Basically, if a creature controlled by the AI is encumbered, and one of your characters are in the normal range of a step attack, the computer will "waste" the card, because it doesn't realize that it won't be able to perform the full step move, and ends up not being in range for the attack part of the card. The best example I have of this are the armored dogs who have the ill-fitted armor card, which is encumber 2, and they also have a lot of Lunging Thrust and other step cards in their decks. It's pretty nice to see them waste all the cards, but I don't think it should happen. They should take into consideration the fact that the step card won't reach because of encumbrance before trying to play them. It's always better to keep the cards in your hands than waste them, mainly if you they would have been able to discard the ill-fitted armor by keeping all the step cards. In the same vein, if the AI is standing on lava/acid, it won't think to use a step attack card for the move part if it wouldn't be able to hit anything with the attack part. Thanks