I have noticed that the AI is better in MTW... I almost lost a battle today against French peasants, what a shock i got. My army was spearmen and archers, and even my king with 4 command stars! The enemy peasants attempted to outflank my line of spearmen on the left side causing one unit to actually rout... Their royal cavalry did damage too, it was close but i won... Never thought peasants could be effective like that.