Are AI gunners in naval smart enough to change shell types?

In naval battles, when I let the AI gunners control my auxiliary and AAA guns, are they smart enough to change shell types based on the target they’re shooting at? For example, on the Litchfield, when the AI is controlling the 3-inch gun on the aft of the ship, will they switch between common and HE-TF shells based on whether they’re engaging ships or aircraft?

It remains on what ever ammo type was last loaded from what I’ve seen. I have not heard of it ever switching automatically.

I check and set my ammo types often and they never seem to change when left on A.I.

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They do not swich ammo types. You must select that weapon and change them yourself.