Even in version 1.02, the AI doesn't seem to disband obsolete ships, even though now MW's, frigates, and commerce raiders are completely outclassed by ironclads.
The AI only seems to replace ships as they are lost or when they go to war they expand their fleet building whatever the best ship available is. However, they will never disband their older ships and this leads to AI fleets remaining mostly MW's and frigates late into the 1870's, 80's, and even beyond.
1.02 has greatly improved the naval combat system, but I don't think it solved many of the issues leading to obsolete force mixes used by the AI. I know many people say the AI does build modern ships and they do build them under certain circumstances, but they aren't really going about it properly which leads to a very ahistorical and usually nonsensical naval balance of power (usually in my games the nations that stay at war the longest, such as Russia and Austria have the largest navies, consisting almost entirely of commerce raiders).
Also two other quibbles. The English AI doesn't value naval research at all. Usually they lag far behind a human player that is just pursuing a balanced research plan. Also, the commerce raider is far too overbuilt of a ship. Because of the new "fast" designations it seems that the raider is built as though it is a later cruiser design, and the fact is that the IC is superior in speed, firepower, and defense. There is no reason to build the raider at all in my opinion, but the AI seems to build it primarily.
The AI only seems to replace ships as they are lost or when they go to war they expand their fleet building whatever the best ship available is. However, they will never disband their older ships and this leads to AI fleets remaining mostly MW's and frigates late into the 1870's, 80's, and even beyond.
1.02 has greatly improved the naval combat system, but I don't think it solved many of the issues leading to obsolete force mixes used by the AI. I know many people say the AI does build modern ships and they do build them under certain circumstances, but they aren't really going about it properly which leads to a very ahistorical and usually nonsensical naval balance of power (usually in my games the nations that stay at war the longest, such as Russia and Austria have the largest navies, consisting almost entirely of commerce raiders).
Also two other quibbles. The English AI doesn't value naval research at all. Usually they lag far behind a human player that is just pursuing a balanced research plan. Also, the commerce raider is far too overbuilt of a ship. Because of the new "fast" designations it seems that the raider is built as though it is a later cruiser design, and the fact is that the IC is superior in speed, firepower, and defense. There is no reason to build the raider at all in my opinion, but the AI seems to build it primarily.