This seems to be averted in World, where the AI seems predisposed towards getting back into the ring.

If you sim a hardcore match, we hope you like neverending outside brawls. Artificial Stupidity: Mostly averted, but the game still has some issues, such as the fact that if count-outs are disabled and the wrestlers both end up out of the ring, they will stay out until there's a lucky Irish whip that sends one of them in and the other follows back in before the former's CPU logic makes him come back out.Art Shift: Iron Slam '96 attempted to use 3D polygons instead of 2D sprites.