True, I miss me too
I've looked into it and its insanely murky. Technically even just modifying files is not necessarily maybe legal according to some sources? It's all so complex, it makes my head hurt. I don't even know how AIScriptpad writes things into the game's code, whether it actually uses the game's code or just straight up writes assembly into the file.
I'm such a wuss about stuff like this.
The problem is that modding is a very, very murky legal gray area.
However, there are things that kinda catch too much attention, and start being brought to tournaments, and tournaments include money and whenever money is thrown into the equation, s*** hits the fan pretty badly for modders.
On the other hand, things like small customizations to characters or even remodels from scratch do get a blind eye.
Modding AI can be treated as an educational experience, and more importantly, gets no profit whatsoever.
No one ever bothers with AI on a tournament. (Aside from IC players, but no one would take AI mods there because it's grounds for DQ)
However, the casual players and tournament players seeking ways to practice combos do benefit from a modded AI.
So considering it is a minor mod mostly for educational purposes, (Ex: I'm interested in modding AI so I can learn more about coding and to learn tech that will make me a better player.) I don't think this is going to get anyone in trouble.
Obviously, I completely understand any fears about the whole thing, I stopped modding a Pokemon Stadium 2 rom when I realized it could grow too big because I couldn't find anyone who managed to do that. There's always the option of knowing when to fold.
But yeah, considering that Brawl Vault is a thing, AI Mods are the least of Nintendo's problems.