What needs improving about the AI?
My most recent patch (revision 8, in the Files section on the yahoo group) made some changes to AI repair skill use. (now they do First Aid, General Repair, Medicine, Biotech, Mecha Repair, in that order).
The AI is now good at selecting a weapon and an appropriate missile burst size. They love to use BRUTAL BLAST weapons.
The main silly thing is firing 3/4 of the missiles from a Heavy Assault Pack at a single un-armoured target as soon as it's barely in range. So the AI could really use SWARM weapons a lot better. And giving some consideration to how much of a threat the target is, and whether there's anything else to shoot at, should influence whether they fire most of their missiles at once at it. The missile firing decisions work well for mecha combat, where there is the opportunity to reload between fights, and a laser rifle + calliope + heavy assault pack won't be your only weapons. For enemy AI, it works well to fire big bursts, because they'll die quickly.
One possible direction would be to have the AI decide on a strategy for killing something: Either strip the armor down with lots of light weapons, or with (BRUTAL) blast attacks, or punch through the armor, either with high damage or armorpiercing weapons. For this to work well, the AI would have to consider its weapons while choosing its target, rather than 1. choose target, 2. choose weapon, 3. choose BV/called shot/...
So yeah, the AI should look at the target when deciding how to attack. A called shot at the body when they're down to one hit point, but they don't have any body damage, isn't a good plan. I've resisted making the AI head-hunt, since I think it would be _very_ effective, and very lethal in personal combat against just-starting characters without good dodge skill or good armor. It would also be killer against head-cockpit mecha. I mean, all it takes to kill an Ovaknight is a good sensor and attack skill, a Gajira heavy missile, and a called shot to the head. With some Spot Weakness skill, even Haywire missiles work well for head shots, esp. against lighter mecha like a Corsair or Century.
The AI's movement decisions are not always great, but they could improve with more specific orders. And I don't have much idea how to make it better. I haven't looked at the hotmap and movement heuristics much.