Edited as I was an ass to the Original Poster and I have removed what I posted here. Thanks Halimac.
In any event the AI is VASTLY improved over Beta 5 and VASTLY improved over GC II and will continue to get better. Did you review the new beta patch 2 notes? Here let me post some of them for you...
AI
Improved logic for when the AI keeps ships as planet defenders or ejects them to go chase down threats
If the sponsor is under threat, the AI will rush build (or try to if it can)
AI will reduce the weight priority of a ship project to build based on the number of turns it will take to build that ship
AI will tend to focus only on its primary opponents and is less likely to go after "that guy" (reduces spreading himself thin)
Rewrote the surrender code
AI much more likely to surrender if it is basically out of the game.
AI can now try to bribe other AI's to declare war on players
Lots of new checks to make sure the AI behaves as you would expect based on their relations with you and each other
AI checks relatiosn before trading with each other (no more tech trading with people they don't like)
Eliminated the use of the wealthslider setting in AIdefs in determining balanced budgets. Balanced budget request to AI supercedes its wealth slider preference (translation: the AI now has logic to control its spending and won't be constrained by the xml guidance values if it needs to do something extreme)
Shared borders is no longer a negative issue if they have an open borders treaty
AI won't suggest a player attack another player if that player is stronger militarily
If the AI is losing a war it will build ships even though it might go beyond the maint' cap
AI more prone to building scouts to explore early on
AI greatly reduces freighter building priority if it is losing a war
At higher difficulty levels the AI is more likely to aggressively rush build
AI determines how many ships it should have in orbit based on how good the planet is (instead of caring about the logistics)
Reduced the number of ships a planet thinks it needs in order to feel defended
Reduced some of the bonuses the gifted AI gets
Gave a range bonus to the higher difficulty levels
Rebalanced the defense importance modifications (how important a given object is to the AI)
Increased the valuation the AI gives to building assault shiups
AI takes into account the cost of a ship when deciding whether to build it
AI keeps track of enemy faction power
AI is made aware if it is starving its military of funding
AI is much less likely to defend starbases and shipyards with new units than preivously
Modified the rate at which the AI starts diplomacy with the player
AI is more sensitive to military buildups by players
AI doesn't demand tribute or tech unless it has a stronger military
AI now decommissions shipyards that it isn't sponsoring anymore (most likely because it lost the planet that was sponsoring it)