@zappazapper
May I ask what timezone you're in aka. when you are searching?
For AIs in MatchMaker:
There has been a discussion on the FAF discord which I recommend checking out. It was quite a while back (prob a few months) so I can't remember any details about it sadly.
Besides that if you can beat M27 consistantly in 1v1s, you should be able to beat ~700 rated players as well, so I don't think your "skill" is a problem. I suggest to look for some other players to play with, if you search together the average rank is the only metric the system cares for so you can probably get more matches. Ofc it's not the ideal solution (as a bigger playerbase would fix quite everything), but it's the one I can give you