Let me assure you we're trying very hard not to have the AI suck.
The thing to keep in mind, though, is that the goals for the AI in a SP game are quite different from those of a MP game. In SP you, the player, are fighting scores of opponents at the same time. Your objectives are also generally very quite different than they would be in CtF match, for example. So the challenge becomes to make the AI interesting to play against, but not so powerful they will wipe the floor with you. Especially since we want to use the SP game to ease newbies into the Tribes franchise...
What makes an AI fun to fight against? It should present a challenge, maybe do cool things once in a while you weren't expecting, but ultimately be beatable. In particular, it *should not* act like an expert human player, because what chance would you have against 5 of those at the same time? It's also not fun to be killed by an AI because he did some superhuman thing like having perfect aim. So the approach we are taking is to:
a) Have a bunch of recognizable AI "classes" that use a particular set of weapons and employ particular tactics, so the player can anticipate what these AI's might do when encountering them and formulate a strategy to defeat them.
b) Use these classes to gradually familiarize the player with the different weapons and tactics.
c) Have AI's do sensible things (i.e. not "look stupid"), but not be perfect. It's fun when you have the feeling you are fighting a fairly smart opponent, but the opponent makes a mistake once in a while you can exploit to gain the upper hand. What can also be fun is when the AI sometimes does something really cool and kills you, but you don't mind because you're thinking "hey that was cool, I wonder if I could do that next time?".
One should also not underestimate the importance of giving the player the feeling he's l33t and powerful when playing the SP game, so having some unsuspecting simple AI's standing around that the player can eliminate with a well placed mortar round is a valid design mechanic as well. Or having some AI's that can't jetpack whereas you can. The important thing is that not all encounters be that easy.