The better solution would obviously be to just make the AI better. The question is if that's possible.
The problem with the AI as far as I've noticed is how he doesn't anticipate spikes of damage. He's basically a free kill even at full health, because he doesn't start running until he's rather low and is easy to finish off.
I think the planned change of increasing his hp and lowering his reward sounds pretty good, but still a bit of a compromise. Additionally I'd definitely make him more defensive. I'd have him run away just to avoid coming into another dg's range in the first place.