The prioritization of colonization techs, which are expensive, and on the colonization race in general does have a pretty big impact on the AI performance.
Interestingly, it seems that the AI plays very similar to how I would like to play: devote 100% of everything to colonization until the board is filled, and then worry about stuff like military. As a result I'm usually able to cap off my colonization phase with a quick rush and take-over of one of my neighbors and establish clear dominance (and, if I wanted, continue to steamroll the rest of the galaxy).
I only play on Tough, but I do customize the enemy AIs to use all their race points on econ, morale, and pop growth, as well as turn their AI algorithms and CPU usage to full. I know they would do better with the extra resources of higher difficulty levels, but I'd think that on Tough they would at least be able to put up a decent fight to a mediocre player like myself.
However, this is still a beta and the devs have been pretty clear that the AI is still undergoing major adjustments. That combined with the probable nerfing of super hive should be enough to put me back in my place