I have no idea whether or not this is standard behavior but I have noticed when creating missions involving occupation AI commanders it seems they have very little interest in holding objectives.

I understand the occupation AI uses less forces when attacking but aside from that when one of their objectives [Camp Rogain] are being assaulted or captured there is very little retaliation. From what I can tell this is due to their forces being used to seize an objective [Girna], but in my opinion units that are staging (assault not yet started) should leave to defend current held object and only go on the offensive once high priority objectives are safe.

This is all just assumption and I was wondering if the AI is working as intended in the above situation because it seems a little off to me from what I've read on the wiki. (Otherwise having a blast with Alive!)

I might be using occupation forces wrong, do I not sync the commander to enemy placement modules for it to work properly?

Usually the AI seem to use a Platoon level (3-4 entities) to attack and at least one to defend/occupy. Try to add the total number of base, + 4 and then some more to see how it behave? I guess more experienced people could answer.

Thanks for the reply, I will attempt to up the numbers and see how it goes. I'll even experiment with decreasing readiness of the troops to something around 50% (which I hope means they'll become active and reinforce once they lose a few objectives right)?

No, readiness is more local. its if the AI will patrol around, walk, use statics/garrison. Low readiness make them stay in the middle waiting, somewhat. . Hope i did not mistake.

I have seen my defensive AI, who had no more obj to capture, regroup like 3 to 4 groups to defend from a incoming enemy assault. The level of intel was set to high, i do not know if this is tied or not. But apparently, if the AI know something nasty is coming, he does indeed react. Loves this mod.