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The AI is a worthy opponent in most ways. If you are playing each game and every at-bat I find it up to the task.
On a grander scale, it does initiate trades and will not hand over quality players easily. The constraints of contracts and budgets mean you can't build a super-team while the AI teams watch helplessly. In my limited experience I would even say the AI has a slight financial advantage, although I have no data to support that. It just feels like the AI has an easier time getting players under contract.
Weaknesses: it will pull some bizarre roster moves on occasion, to put it mildly. I find it's weak in managing farm systems, and I don't know if that's because it puts less weight on coaches or on developing prospects.
As a solo game it's a good challenge, and any time you feel like you have the system beat you can tweak some settings and make it more difficult on yourself. It's definitely not an arcade game that you can just with practice consistently beat.
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