Observation:
AI does not react to getting hit and it does not affect their combat effectiveness - unless they die or get incapacitated.

Expectation:

• AI should visibly react to getting hit: stumble if shot in leg, move arms a bit if shot in arms, hunch if shot in thorso and so on...
• Getting hit should affect combat effectivenes: it should throw off aiming, delay reactiontime, reduce visual awareness...

Gameplay effects

• Players would get better visual feedback on hitting targets.
• Enemies getting hit by bullets would not be able to fire back that effectively - more fair gameplay

Please take a look at the Arma 3 mod by WebKnight:
Death and Hit reactions