Add this piece under StateDef -2.

[State -2: VarSet]
type = VarSet
trigger1 = (Var(0) != 0) && (PalNo = [7,12])
var(0) = 1

These next few states are used to turn the AI on and off at the
appropriate times. We wouldn't want the character to battle during
his winpose.

[State -2: VarSet]
type = VarSet
trigger1 = (Var(0) = 1)
var(0) = 2

[State -2: VarSet]
type = VarSet
trigger1 = (Var(0) != 0) && (RoundState != 2)
var(0) = 0

[State -2: ChangeState]
type = ChangeState
trigger1 = (RoundState = 3) && (StateType != A) && (Ctrl)
value = 0

The advantage to this method is that you can choose different levels
of AI for watch mode. When selecting the character, you hold the start
button, and simply choose a pallette. However, you must create a
different level of AI for every one of the pallettes, 7 to 12.

[State -2: VarSet]
type = VarSet
trigger1 = (Var(0) != 0) && (PalNo = [7,12])
var(0) = (PalNo - 6)

When programming your AI's they can be organized in this way:

Var(0) = 1: Level 1, Pal 7
Var(0) = 2: Level 2, Pal 8
Var(0) = 3: Level 3, Pal 9

etc...