The AI that is not local to your own machine can see through smoke.
I've tested the following types of smoke: smoke thrown by a player, smoke thrown by AI (local to a dedicated server and local to my own client), smoke spawned by Zeus. They all are affected by this bug.
This bug has been reproduced on a dedicated server.
This bug does not happen in singleplayer.
It's unknown what happens exactly when there are multiple AI local to different (multiple) players. I haven't tested that. I only did testing on my own on a dedicated server.
I created a simple test mission in which you can easily reproduce the bug on a dedicated server, it has been attached to this bug report.
The test was performed on an unmodded (vanilla) dedicated server and on a different heavily modded dedicated server. The bug happens on both.
I first experienced this bug about a month ago, which is when I first performed these tests. I again did these tests about an hour ago and the bug is still present in the recently released game update. {F26608} {F26609}