In my experience, the AI in the original KOH was way too boring. Even Hard mode wasn't really hard because the AI never prioritized elite units. Only famous rebels and crusaders actually had powerful armies. Every time I conquered enemy towns, they were filled with useless buildings. The AI always chose goods production over defense and military and often times produced duplicates instead of utilizing kingdom's special or local units. I hope the new AI can analyze its potential better and use its provinces resources accordingly.