The main problem I have with the strategy AI currently is that it doesn't seem to take advantage of free uncontested territories and would rather spam attack with transports and zeppelins.

I was playing on Dragons lair with my start position in the bottom left corner. The AI on the bottom right seemed to play reasonably smart but the top left and right AI's just kept attacking each other with transports. At the same time both AI's were NOT capturing uncontrolled territories around their capital. This crippled their research and gold output so by the time I finished off the bottom right guy the top 2 were complete push overs. It's great that they can use transports and the water but they HAVE to be smart enough to grab free money.