I agree with the sentiment above. The AI is really good a creating templates for the late game and using them. What the AI really needs to be improved on is:
1) Encirclement - The AI stalls out when it/I encircle some troops. This isn't helpful and that pocket should be taken care ASAP. This is most pronounced on the Axis, when they manage to pocket a major Allied landing, they end up staring at all those troops while not taking the initiative to pop the pocket
2) Garrisons during war - I still find the AI has some of its troops on garrison when its at war. Unless there is good reason to have troops on garrison, the AI should be taught to bring all available troops to the fronts.
3) Improve front maintenance - This pretty bad with the Axis again. The AI is constantly moving troops from front to front, allowing you at times to seize an initiative, but when they come back to stall out. I shouldn't be replaying WW1.
4) Troop spamming - The AI shouldn't be spamming troops into space at the height of the war. There should be some type of cap (perhaps based on conscription law and CIV factories) of possible number of troops. This should prevent nations like El Salvador from having 25 divisions, on two tiles. This should also help the USSR get an advantage against the Axis, as they will come late game begin to massively outnumber them.
5) Prevent Conscription Law "Leap-frogging" - This is more a base rule issue. The Soviets tend to jump to All-Adults serve too early into the game. Prevent the AI (and perhaps the player) from leap-frogging forward on conscription laws, by making them incremental and require you have low manpower before you change it.
6) Better inter-AI cooperation - The AI should be a bit better at working with its allies when comes to war. For example, if Britain launches the liberation of Greece with 45 divisions, Greece should try to invest into its infrastructure to help Britain maintain those divisions, while also sending its own divisions.
7) Infrastructure - Speaking of infrastructure, the AI should try and factor in infrastructure when it sends in an invasion. If it cannot handle the infrastructure, it will build more (if it can), or the ally will attempt to boost infrastructure.