Artificial (complete lack of) Intelligence

I was playing CIV4 yesterday when the AI did something laughably stupid. I was advancing towards a costal city and had a fleet sitting outside it bombarding the **** out of it. The AI takes it's turn and loads 12 of it's strongest units onto transports and sends them out escorted by a carrier and a destroyer, while sending a solitary battleship the other way. They ended up out of range of my battleships but still in range of 6 destroyers, 15 fighters and 19 stealth bombers. To make it even more baffling; if he had kept those 12 units in the city I wouldn't have been able to take it. Depending on how the assault went, I might have had to retreat and/or reinforce. As it turned out I was able to take the city and send the bulk of my troops on towards the next.

I have a huge numerical advantage over the AI player, but I know if the roles were reversed, I would be able to hold out and counter-attack whereas the AI is doomed. You don't end up wondering if you can beat the AI - you just keep stacking the odds against yourself until it becomes farcical. Surely they could have done a better AI than that?