I'm guessing that the reason why the AI doesn't use grenades is because it's not looking in the general inventory for usable weapons. I would like to have some mecha which come with grenades as standard, but one problem is that once grenades are used they're gone and won't be reloaded at the shop. I considered making a special mecha-sized grenade satchel to conserve the grenade gear even if all grenades have been thrown, but that didn't seem like an elegant solution.
A second-best solution I thought up was to include mecha scale grenades at certain stores.
I'll take a look at the weapon selector. I'm planning to give NPCs grenades in GH2, so they better be able to use them.