Nice to see some activity for this great mod!
Of course, I would like to have better AI. If I could choose between good AI and better AI I would always pick better AI.

But I don't know if the AI can be improved so easily.
One think I noticed is that the AI accumulates a lot of unused settler in its city during the game. This might be due to the fact that the AI tries to expand but fails and then forgets (maybe?) about its previous built units. So it would be nice, if the AI wouldnt forget about unused settlers or, even better, doesnt fail to expand in the first place. I usually play on monarch or emperor difficulty, btw.
I also feel like the AI is bad at judging the strength of its army. Since in MoM (+extended), the strength of ones army doesnt solely depend on raw numbers but on synergies between units, promotions, spells, enchantments etc., it is understandable that the AI is bad at it.
There might also be other things not optimal about the AI, like focusing on not ideal technolgies/guilds/magic research. But it's hard to tell for me from the outside to which degree this is the case..