It's not just about levelling; it would be cool if the AI more often used unique strategies like FEAR, SubPunch, Trick Room teams, Intimidate/U-Turn, Baton Pass setups, Belly Drum setups, entry hazards, Toxic/Protect stalling, para-fusion, Mean Look/Shadow Tag + Perish Song, etc.
You see some of this stuff in the later stages of the Battle Maison/Battle Tree and whatnot, but too many of the AI teams are just a hodgepodge of random Pokemon that either spam random moves or whatever is super effective against the current Pokemon. It's so trite. The Pokemon battling system is way more complex than that and the single player should at least have a difficulty level that respects that.