My operation, which is next in line to be played, has a battalion worth of infantry, some tanks and artillery pieces. I tested it with my group, 5 players + me as zeus/player, and it worked fine, I was even surprised by behavior of the AI. Even the motorized column held it's formation. At no point was there any swarming or contacts that were too hard for the group.
LAMBS has some great features, but IMO, it needs to be turned off for AI. They have enough trouble following given orders, let alone deciding for themselves...