I don't play with any allied AI other than fighters, which actually has very good AI in most cases (flanking, taking you between fires, making you have to choose between shielding your engines from the hound or your front from the broadswords).
However the allied AI is rather frustrating in big ships. The Medusa in particular is shocking. I will fly one against any enemy fleet say of 2 talons, 1 pirannha, 1 broadsword, a buffalo, a hound, a lasher, a carrier and a heavy freighter-frigate and win (after ten minutes of kiting and phasing) whereas an AI medusa will charge this group and get gang-*** in about 10 seconds. Lol. I know the AI cannot match human intelligence but come on.