The HoMM3 AI is not cheating for example, and I cant tell you with words how good it is.
Try it and you will see.
Kristoffer or any other devs...can you tell us the content of the next patch?
What is what you are going to add/fix?
If I am correct we still wont have AI improvements, that wasnt hard to figure out, eh.
If not now, with the second patch from now, please try to improve the AI, and solve the problems step by step.