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When using your amiibo in Smash, they will gain levels. This wiki states:

The more the amiibo is played, the more it levels up, unlocking different moves, equipment and customization options. They will also level up faster when pitted against other amiibo fighters.

Is there anything else that makes the higher leveled amiibo better, like higher base stats or more intelligent AI?

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As Amiibo level up, their stats will increase. This will lead to Amiibo being statistically more powerful than other players when custom characters are turned off. You can customize how their stats increase by feeding them equipment, but they will increase even if you don't. The total of Amiibo stats (attack + defense + speed) cannot exceed 120.

Amiibo's stats will stop increasing at level 50, although they will continue "learning" and to improve their AI. Amiibo's AI can become considerably better than even a level 9 CPU, and their behaviors will be representative of what they found to be successful, for them as well as their opponents, so far.

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  • So having two level 50 Mario amiibo with max stats are not equal if one was played with longer after it reached 50?
    – Batophobia
    Commented Dec 4, 2014 at 17:53
  • @Batophobia Correct. It's more specific than simply duration of play though, as specified in the last sentence of my answer. You can find individual players' experience and research regarding Amiibos in the Amiibo subreddit: reddit.com/r/amiibo
    – Brian
    Commented Dec 4, 2014 at 19:39

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