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I can be totally wrong, but I feel and think like the following:

If the AI is too good, it will be frustrating for the players. I guess most players want to feel like kind of "heroes" with their character (e.g. in a Shooter). If the enemy AI is too good and basically each single enemy could kill you, then there never will be the feeling like beating dozens or even hundreds enemies all alone. The enemy characters need to be ridiciously weak compared to the player character then, so that you can achieve that.
Of course there can be different difficulty levels, but when they really massively change the AI behaviour and not only like the damage dealt or the hitpoints (or some numeric values in general), then the effort for AI-making would be massive for some genres, I guess.