What I have noticed since v1.2:
Good:
-AI is much better at army construction. In 1.2 I have seen full stacks sent my way, with good balance between archers and melee units. This alone has made wars with the AI far more interesting.
-AI puts its champions into stacks far more often, killing lone champions used to be commonplace, now it is rare
-AI seems much more ready for war when it attacks now, after war declaration AI attacks with competence within 5-10 turns.
-(SIDE NOTE) Love the new strategic environment of pioneers costing population
-AI defends it cities very competently now, taking an enemy city usually requires your best army. This is a huge improvement to the game experience.
Bad:
-AI still makes no use of mages, even when it has the crystal. Archers AND mages would make it very hard to steamroll, and force you to change army design during wars.
-AI still could build its stacks more efficiently. Doesn't makes sense to send out a partially full stack when your intent is direct combat.
-AI doesn't entirely understand population cost for pioneers. It still spams them to settle and get resources, which is very effective LONG TERM, but I find it gets in fights with me before that strategy has really paid off.
-AI rarely puts more than 1 champion in an army, seems incapable of making a "stack of death."
-AI never seems to build bows better than shortbows for its troops. Considering how good it is at building company strength archers, this alone holds it back significantly.
-AI seems to favor high-level repeatable civilization research over maxing out the warfare tree. This might actually be smarter, but I rarely ever see plate mail on their melee troops in the field - that would make them even deadlier.
-AI doesn't realize Pull Of The Earth is useless on mounted units (but otherwise makes good use of the spell)
Despite my negatives (just have lots of input), I am enjoying the improvement. The game has gotten significantly better over these updates, thank you.