smash-bros type fighting game? Definitly wouldn't have been able to guess that from your first post, and I don't think the AI requirements would be quite so simple either.
Imagine a human player playing the game, what would they see and take into consideration before making their next move?
in smash-bros, all the players are all visible, so we would normally just go towards the nearest player (distance checks) who doesn't have some kind of special power (basic IF..THEN checks), then start attacking then (no checks, just attack!).
some players like to wait until an opponent comes near enough, others just go gung-ho and attack anyone and everyone. Having different AI profiles will make your game(s) more interesting, so don't fall into the trap of thinking theres only one way to do this, the more variety the better.
just think it through step-by-step and you'll be able to make a simple working system in no time.
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