The game is far more strategy-dependant than vocabulary-dependant. The word list comes nowhere near being exhausted on a given board within a game.
Now, is it possible to write an AI? Sure, and actually, an AI-contest for this game would be a whole lot of fun. It's not simply "generate words" - you could give everyone the word list and the game would still play well.
I'm going to love this game right up until someone else creates a cheating app/site.
Seriously though, cheating apps totally ruin these word games. I remember loving Scrabulous (remember that name?) right up until everyone figured out how to cheat. Then the game just became tedious. Hopefully the tile-taking mechanic in this game will introduce enough strategy to keep play interesting for a while.
But it's not just about who can play a few 10-12 letter words. You need to use the corners and the squares around them to deny your opponent from quickly flipping them back to their color.
Now, is it possible to write an AI? Sure, and actually, an AI-contest for this game would be a whole lot of fun. It's not simply "generate words" - you could give everyone the word list and the game would still play well.