Cheers.
Related: I just finished a recent domination game on deity as Kublai Khan on a continents map, and I counted a total of two(!) frigates from Russia despite him having half his cities along the coast.
The other leaders on that continent (Khmer, Persia, Maya, Scotland) had zero ships, making the seaborne invasion of that continent a sad joke (for my targets).
Norway (on my home continent) built some 4-5 longships, and apart from that the only real contesting of my waters were from suzerained city states that I was at war with.
Norway often seems to be the exception here, and the reason (I think) is that the AI generally tends to prioritize building unique units whenever they are available.
That being said, even in this case, the absolute bulk of Norways military was concentrated in land units (about 80%, perhaps more), despite him only having two cities that were settled inland off the coast.
Apart from that, I saw Turkey building one (useless) galley, sitting still on a two tile lake outside his city while I mowed him down with my land forces.
City states often seem to be the exception to the rule, but I have a strong suspicion that the reason city states often tend to have a lot of ships, is that I play with barbarian clans active.
Thus the reason for the high ship count seems to be that they are leftovers from when the city state was a barbarian camp, because a city state in itself doesnt seem to prioritize building ships any more than a regular leader AI does.
Thus we can safely conclude that whether on prince or on deity, the AI does in fact not understand how to use sea units (let alone build sufficient amounts), unfortunately.