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Does the German AI put up a decent fight if you're playing a full campaign as the allies? I get humans might always expect to beat the AI, but would you expect the German AI to manage its economy competently and put up a competent defense? I'm trying to decide if I want to start a series on this as the allies, and am trying to understand what to expect once I get 3 months, 6 months, 9 months, into the war, starting in 1943, I'm worried the AI's economy will just implode through mismanagement vs my bombing.

The Axis AI handles their aircraft production and R&D fairly well, and if you don't disable their ac production centers or avgas there will be a lot of jets in the air by late 1944 causing havoc with your air superiority score.

Otherwise axis industry chugs along without much interplay whether it is the AI or a human running it. The Axis AI also does an OK job or allocating AA assets to critical industry.