You will need a good knowledge of Lee Swordy's Traffic Tools FS addon to be able to use AI models.
The AI downloads here do not contain any textures.

Texture formats and AI

Models will work best as AI if their textures are in DXT3 format.
I don't tend to use DXT3 format for fuselage textures, because the quality can sometimes be less than impressive in normal viewing.
DXT3 format uses something called Mipmaps, which are a series of smaller sized versions of the main image. When a model is viewed from a distance, it automatically uses a smaller image size because all the detail is not needed.
I normally use a mixture of old style 8-bit, new style DXT3 & new style 32 bit.
While the non-DXT3 formats work very well for the main model, they are very inefficient for use on models in the background.

There is a utility included in the AI download which can easily convert any of the regular textures to DXT3 format.
Just run 'Texture Converter.bat' & select the required option. Converting Texture Format

Setting up textures for an AI model

Using the AI VC10 download as an example, I set up a Standard 1103 VC10 in Ghana Airways textures & a Super VC10 in British Airways textures.
The red bits are the important things that have to be edited in the 'aircraft.cfg' file.

[fltsim.0]
title=AI VC10 0
sim=Boeing747-400
panel=
model=AI1103
sound=
texture=Ghana 1979
description=AI Traffic model\nModel by David Maltby\nwww.dmflightsim.co.uk
ui_manufacturer=AI Traffic
ui_type=VC10
ui_variation=Ghana Airways 1979
atc_heavy=1
atc_id=9G-ABO
atc_airline=GHANA
atc_flight_number=120

[fltsim.1]
title=AI VC10 1
sim=Boeing747-400
panel=
model=AI1151
sound=
texture=BA
description=AI Traffic model\nModel by David Maltby\nwww.dmflightsim.co.uk
ui_manufacturer=AI Traffic
ui_type=VC10
ui_variation=British Airways
atc_heavy=1
atc_id=G-ASGM
atc_airline=SPEEDBIRD
atc_flight_number=121

• The number used in the [fltsim] must always be sequential, starting with zero.
  
• Each AI aircraft must have a unique 'title=' name in FS.
  
• The 'texture=' parameter has to be set to the name of one of the FS aircraft's \texture folders.
  'texture=Ghana 1979' will look for a folder called '\texture.Ghana 1979'
  
• The 'model=' parameter has to be set to the name of one of the FS aircraft's \model folders.
  'model=AI1103' will look for a folder called '\model.AI1103'
  
• The 'sim=Boeing747-400' paramater is there because the AI model uses the flight dynamics 'air' file of the default Boeing 747 model.  It does this because the simplistic AI system in FS can not always cope very well with the proper flight dynamics files.  It makes no difference to the accuracy of the AI traffic.
  You could use the default 777 model (or any other) if you prefer.
  
• The manufacturer has been set to 'AI Traffic' just to keep them out of the way in the FS aircraft selection window.
  
• All other information given about each particular repaint is optional.
  
• If you fancy a change, you can simply set the texture details 'texture=' with another texture folder name & there is no need to mess about compiling with Traffic tools.
  
• Any texture folder can be copied over from one of the proper models into the AI model's folder, but I'd advise you to run the Texture Converter (convert to DXT3 format) before using the AI model in FS.