Will AI recruit high tier units often in very hard campaign difficulty?

I am playing H/H as Kugath right now. Late in the game, 91 turns.

I already have access to toad dragons but I don't see a bunch of high tier units for Northern provinces. They have over 20 settlements and a bunch of armies but damn, at most their units reach tier 3. WTF.

I wonder if this is intentional. Maybe going into very hard campaign difficulty is the way to go?

I kinda dont want to go VH because I'm used to doing campaigns at hard and it might be too "hard" for me to handle.