The AI has an incredibly tough time dealing with masses of undead so when players use them against the AI they tend to do extremely well. It is quite possible to stop them if you know how, the AI just doesnt. Enough priests, the right items, a good spell or two and undead go down extremely easily.
Do a search for undead or Ermor and you'll find all the strategies described by persons more experienced with them than i am.
Mmmm. Undead hordes. Crunchy. The undead suffer from several unfortunate weaknesses, the first and foremost of which is their weakness to point-blank annihilation. They also tend to be flammable, and conduct electricity.
Playing a race which creates the undead like Ermor or a theme from C'Tis is good for a beginner.
If you are looking for a challenge play a game where the computer opponents are Ermor, Ryleh, Jotunheim and Ulm.