The enemy team does get better, actually, it's just that your allies getting worse is much more noticable. It's nearly unplayable in a game where success comes down to teamwork, and dying too much makes you a liability to your team. It certainly sucks the enjoyment out of the game. It doesn't help that the AI just doesn't know how to play some demigods (I can't tell you how many times I've killed an AI Rook because he moved into tower range to use structural transfer, got stunned, and died to tower fire).
However, there are a couple ways to pull out a win. Remember, you need to win by favour; it's theoretically possible to lose every single match and still come out the overall winner. You just gotta win as many awards as you can. Kills, kill streak, gold, and assists are out of your reach. The other team WILL kill more than you due to the stupidity of your allies. Deaths will also be hard to shoot for because the enemy team will be rigged out with the best equipment as a result. However, citadel upgrades and flags are virtually in the bag. The dumbed down AI allies you get are very slow to get either, allowing you to do most of the flag and citadel work for your team, giving you easy access to those awards. Depending on your DG choice, damage, spawn kills, and structure kills are all within possibility.
Because the demigods who are on your team will not win any awards, this means their score will plummet just because they're put on your team (because their AI gets dumbed down). As a result, a lot of the time tournaments come down to dumb luck. If the highest point scoring AI gets put on your team, he'll be instantly dumbed down and won't win any awards, causing his score to plummet that round. If there's a fairly uniform distribution and the AI's all end up on your team fairly often, you can actually squeek a win without ever having won a single round!