I have to say that you did a pretty good job with the AI. The game is too simple, however. Maybe you could expand it further by adding different difficulty levels or twists in the game play. I think it would be better if the paddle moves a little bit faster than its current speed.
One of the best puzzle games I have ever played here in Kongregate. :) The concept is very nice and unique, and the theme makes the experience all the more satisfying. :) Good job!