It just seems like the AI is aware of the ball and their defender, but not so much their teammates. They react and try to spot up in relation to the ball and their defender, but whenever two of them get the same idea and go to the same spot, they don't seem to recognize that they are standing right on top of each other.
As much as anything, the AI players need to be aware of their teammates and not bunch up. That allows one defender to play the passing lanes for both guys and puts you, as a ball handler, at a big disadvantage.