I played a game of Iron War with a lot of AI players and observed some pretty bad behavior.
Britain kept building transports & units out of Western Canada, but these just sat in the bay without doing anything, just accumulating over 16 rounds:
Russia was getting beat up a lot, but they kept building air transport planes instead of something like infantry:
EDIT: Britain was also building a lot of Air Transport planes in the England and not using them for anything. It's probably not the right thing for them to be building, but at least once built, they could have used their 13 air transports to land units in Africa - or straight up to land units in France.
EDIT 2: Reading the game notes, it looks like the Air transports might be coming from "Allied Airfields" that produce them each turn. OK, in that case it's not an AI decision to build them, but that the AI is not using them effectively (e.g. as Britain) is a bug.
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Germany was buying a good amount of AA guns and at some point brought 13 of them to the front and attacked with them:
In general, Russia was messing around all over the map, such as going to Africa, Middle East, etc. and badly losing its Western Front.