Well said piggy (that's as awkward to say as little helper).
If the AI used magic correctly, I'm certain there'd be no troubles with balance. It would be nice if every faction could get an AI script to control it (great for wayward factions) and ones without an AI script could use a default AI. AI could also use more difficulty, levels, such as a scale of 1-10, which would do well with Lau, which could use those as variables.
I do believe daniel and the GAE team had some talk about the AI, but I'm not sure when they will (if ever) try to impliment the like. At least version 0.3.