Easy and Fair AI are actually the same code than Hard AI with longer reaction time. I guess you run toward Kiki, so the time she take a decision, you are so close she can only jab.
Improving AI is on the plan. Notably for Kiki who may benefit a lot from using her specials more. It will come in quite some time though (I am currently working on a new character and an arcade mode.)
In the mean time you may try to jump more against her, forcing her to use aerials.