Thanks for testing it!
You're right, the AI is too easy. I haven't finished the options menu yet, so I've locked it at super easy difficulty. There are some characters with built-in AI, but off the top of my head, I can only think of one (Mima) which is hard to beat. The giant Johnny Cage thing is because I haven't included the global scale parameter yet, it's a lot of fiddling, since it worms its way through everything. Maybe with the next demo. Either way, thanks again for the feedback!