Play some mods like SPQR, Europa Barbarorum, Rome Total Realism, Extended Greek Mode on very hard/very hard, the AI is still dumb but its lot less dumbishh then in normal RTW 1.5
If you want real intelligence adversaries the only option is going online vs other people, but of course thats not the AI.
You can play multiplayer campaigns agaisnt other friends in hotseat or pbems using Myrdall´s multiplayer script, but battles between humans have to be auto-resolved or played agaisnt an AI controlling yours or your friend´s army.
There is already one multiplayer campaign with several humans for Medieval Total War II avaiable.
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