With the 4.1 patch, we now have advanced missions available for squads. We have a new option called a Command Mission where you can take 3 squad members into a handful of ARR dungeons with you synchronized to level. In addition to being a new toy, it also can be used to get used to using your abilities in different classes outside of a normal party.
Fortunately their stats are buffed a bit to offset the fact that they get a bit stupid at times.As they gain levels in the different stances the AI does get better at responding to aoe damage zones and healing. The different stances primarily vary in 3 buffs, increased health, increased damage output or healing, reduces damage taken. Also the mobs also have a higher aggro rate toward you than the squad AI for boss mechanics, such chasing a targeted party member or just attacking you even though you haven't done anything yet while not the closest target.