Given that I went through the large majority of a game with 3 AI where only 1 of them built any ships, IMO it may have gotten worse. Was playing on a small galaxy, and up against terrans, alterians, drengin and arceans. Sure enough the drengin got their military up quickly and declared war on the arceans. I then paid them to declare war on the alterians as well, hoping the two combined could take down the drengin, and then also got the terrans in on the act as well, but the alterians and terrans just did research and didn't build a single combat ship. I then ended up at war with the alterians (can't remember if they declared or I did), and throughout the entire war (that ended with me wiping out their last planet) they didn't build a single combat ship. The terrans weren't any better either, building ships with shields but no weapons (something only an idiot would do). Oh, this was on crippling or something as well, difficulty wise, so the AI was meant to be at it's smartest. Anyway I decided to try and make the game go on a bit longer so with the alterians dead I then went and focused on the drengin, wiped them out, then moved on to the terran, who had finally started building some fairly powerful ships. By then I had a massive size advantage though so was able to roll over their forces and crush them. I was disappointed with how feeble the terrans and alterians were though AI wise.