Not a good example
AI knows how to flank and possibly feint with its navy
Add in a few codes that gets them to form "hunter killer groups" (whether be using Privateers/Frigates or purely subs) to target the most dangerous aspects of your navy (or all of it), and it'll be even more challenging.
Yeah, I remember reading that thread when you first posted it. So in one game the AI pulled a nice tactical attack and gave you a glimmer of hope that it really was a competent foe now. Problem is that this runs counter to what I (and others) have seen repeatedly in numerous games, making me believe that its actions in your contest were just a series of fortunate coincidences.
Don't get me wrong, the combat AI in G&K is vastly superior to vanilla...but it's still not very good. The only time I lose naval units to an AI fleet when we're at the same technological level is when I intentionally leave a unit to soak up shots rather than risk a more important asset and/or the AI moving its ships somewhere to block my advance in the next turn.

