1)I didn`t see option to set AI preference
After you click on Add AI in the lobby, the AI should default to whatever difficulty you have set in the Gameplay options. There should still be a drop-down box to select a different value, though, and you can also change the default dragon type, faction and colour. There should be drop down boxes for each of these, and you can click on the text/colour or a square button with a down arrow on the right side of each drop-down list.