I agree that the AI should have some reaction if shot. Currently they really do just flinch and shoot back at you immediately with PERFECT precision.

I remember back in Arma 2, when AI or even the player gets shot, he will get this heavy breathing state and the weapon just starts swaying like crazy.

Why not bring that back to Arma 3? I mean with the new weapon sway we have in Arma 3, maybe it would be possible to increase the sway horrendously when shot for both player and AI. It would be a nice balance.

I agree with the AI having too high awareness and accuracy.
One thing I want to point out also is that the AI Machinegunners really have too much control in their accuracy. They are able to fire at such great distances very accurately even while standing and crouching. It's a bit too much.

It's very stressful and tiresome to find that the AI are able to detect you almost instantly even through foliage. One of my biggest concerns is when they able to see through grass while they are prone. It's hard to see them but they can spot you like there wasn't any grass in the first place.