Currently, I see this in a lot of wars. I'll be invading and I'll see a bunch of retinues, all small, never massing, so that you can just march over them and turn them into paste, costing the enemy the money it costs to hire and reinforce them. This happens when it's the retinues of vassals of my opponent, they don't actively engage in the battles but they are attackable by me. So, either the AI needs to send those men into battle using the ally AI, in other words, stack them on his liege's armies, or the retinues of vassals of the primary combatant need to be neutral to invading armies.
Also, another AI issue I've noticed with both my vassals and other realms' vassals, is that in a county with a high risk of revolt, the lords still form retinues, when then get immediately eaten as soon as a rebellion occurs, as 500 random troops often have nothing on the 2k rebels. Again, this just wastes the money of those vassals. A fix would be to have the retinues of vassals clump up, or have lords not form a retinue if said retinue is incapable of fighting off a stack of rebels in their capital.
Also, another AI issue I've noticed with both my vassals and other realms' vassals, is that in a county with a high risk of revolt, the lords still form retinues, when then get immediately eaten as soon as a rebellion occurs, as 500 random troops often have nothing on the 2k rebels. Again, this just wastes the money of those vassals. A fix would be to have the retinues of vassals clump up, or have lords not form a retinue if said retinue is incapable of fighting off a stack of rebels in their capital.