Before the 1.1 patch I hardly played the game because if I tried to play the AI, it was absolutely no challenge. The AI would hardly build ships, build almost no capital ships, and never attack, and sometime not expand well.
Well I played a game against a normal AI with the 1.1 patch, just to test things out, and I was impressed with the improvement. The AI built multiple capital ships, expanded to all of the planets I hadn't touched, and built sizable fleets. They even used some tactics. For instance I sent my fleet to attack their homeworld and while my own was relatively undefended some reapers jumped to my homeworld and bombarded it. In addition, they took an indirect route to one of my outposts, attacked it with a huge fleet, and event timed the attack to when the pirates would arrive there. In one battle, their fleet was being decimated, they retreated back to their capital ship factory where a new cap ship was emerging, regrouped and then attacked with the new cap ship in the lead.
Overall I am very pleased!