Current status:
AI in squads will keep the squad formation even when organized in teams (Red, Blue, Green ect.)

Desired endstate:
AI, organized in teams, form their own formation.

For example:
A squad consisting of 12 members is organized in 3 teams, each consisting of 4 members. The team formation of all teams is the wedge, while the squad formation is an echelon left, which results in three wedges organised in a echelon left formation.

Another example:
A squad consisting of 16 members is organzied in 4 teams, each consisting of 4 members. While the base of fire, consisting of a heavy weapons and the command team is supressing the enemy in line formation, 2 teams are flanking the enemy in two separate wedge formations in a pincer attack.

This would make larger teams much more manageable and effective.