Yes, I think the AI is very good especially at the intermediate or higher level. I was playing the Axis and after taking the Low Countries instead of finishing off France I invaded Great Britian. The AI moved the Allied fleet in and I really couldn't reinforce my position. The French just keep rotating armies at my units to wear them down. Never did conquer GB, the USA entered the war in Nov. of 1940 and the USSR followed in March of 1941. Actually saw US air and ground forces in France. The Russians seemed very stronge and where slicing me up pretty good and then the demo ended.
I also had the Yugoslavian partsians move agianst the Italians in the north trying to take Venice and they took Greece from the Italians. I had moved the Italian corp to North Africa.
Tim