That sounds plausible, but if the AI can make intelligent extrapolations like that, why does it make nonsensical moves like wolfriders moving in and out of your zone of control for no reason, or archers moving erratically or even moving into melee range of brothers rather than firing? I think the AI can see your brothers regardless of hidden status(even if you start the battle in a bush), but cannot shoot at you until the hidden status is removed. Of course I am only speculating, but it seems the AI needs some tweaking in some areas.
I do appreciate the different AI behavior depending on which enemy you are engaged. Orcs tend to employ a brute force frontal attack, goblins prefer ranged with wolfriders flanking your second line, bandit archers seem to target your weakest or least armored brother.
A wise general wins before the battle, while the ignorant general must fight to win - Zhuge Liang