Not so much in my game. Dead set to ridiculous (rest of AIs being expert) and they totally own the field, destroying Pariden and Capitar in the progress. Now they arriwed to take on my Altar kingdom and I tell you, their armies are a pain in the a**, with all those banshees.

Epic game BTW!

Well, that might be one fix, but it shouldn't require us to set the AI to a different difficulty level for them to be on par with the other factions controlled by the AI.  This also defeats my "random" enemy selection anyway--to do that I would have to choose the Dead and give them that higher difficulty than the other AI if I wanted them to get more bonuses.  Essentially the difficulty level is just a cheat anyway, as it gives the AI more resources, so why can't some benefit be hard-coded into the game for the Dead if the AI is controlling them.  In my hours and hours of play (284 at last check on Steam), the Dead have always been crushed by the other AI or me.