I got the game yesterday, and I am quite dissapointed with the battle AI. First of all, most battles have been castle assaults, as the AI is not good at bringing an army to fight in the open. Mostly their armies walk away... or something.
But I have yet to lose a battle(this is on very hard battle difficulty). I've fought probably 15 battles(most of them very small) that werent in cities, and the AI didnt really do anything. In one of them I was fighting the french, they had 300 cavalry and I had a bunch of archers and crossbowmen. The cavalry just sat there till my archers were almost out of ammo, then they ran away leaving most of their men dead on the field.
Also I was defending antioch against the egyptians once. They besieged it with half as many men as I had inside, and theirs were mostly horse archers. Their infantry that stormed the walls were all killed, and their horse archers stood outside the walls shooting at us but without much luck. I sent a unit of spearmen outside the gate, where they waiting in schiltron formation, and the horse archers charged one unit at a time until they got massacred. Here is a screenshot:
I consider this AI to be really bad. The Egyptians in that battle killed almost nothing and were mostly wiped out. I have not lost a battle yet, nor have I been flanked or outsmarted by the AI in ANY way. Whats wrong with this game?
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