Does the AI know what the player is doing? I don't know what they are doing when I play so is the AI cheating?
At present, I tend to doubt the AI even knows what its doing, much less the player. They may have sight of you and all sorts of omniscient information, but they can't do squat with it right now. They can't even do squat with the information on their own realms. Fortunately, that looks like it's changing.
Brad, I wanna tell you somethin'. My biggest gripe with AI in every game I've played to date, is how they value objects*.
*What these are changes from game to game, and is a very blanket term the way I'm using it. Using Starcraft as an example, I'm talking about Base Structures, Resources, and Units, the three types of objects that make the game what it is.
In every game I've played, the AI is never capable of valuing these objects appropriately. It generally gives all of them a blanket rating. Going back to Starcraft, the AI will value base X just as much as base Y, despite base X being on the complete opposite end of the map and almost totally indefensible. It will also value resources the same way. Starcraft 2 is a little different in this regard, with the advent of Gold Mineral Patches. (For those unfamiliar, they yield extra resources per trip compared to their lesser blue counterparts.) Unfortunately, in SC2, they value these much too highly, and will often over-extend to get their hands on them, consequently making both that base, and their empire as a whole, an easy target.
Still using Starcraft as an example, they also value units the same way. Playing against a Zerg for instance, I'll be winning a fight, but he'll still have Defilers in the back lines, and a mere handful of Zerglings at the front. When the AI decides it's time to retreat, it sends ALL the units back. Zerglings, being much faster, blow by the Defilers, leaving them to be picked off by my forces, despite the fact that with a few more units and the Defilers intact and at home, they could have otherwise prevented me from annihilating them. Instead they should have valued the Zerglings as absolutely nothing, or rather, as a stop-gap, sacrificing themselves to let the Defilers get away.
I've run into this same problem with GalCiv 2 today. Granted, I'm playing on Beginner with Sub-Normal AI, so I don't know if that's going to change when I bump everything up later, but even at the most basic levels, players assume their opponents are capable of thinking, "I can't possibly win against all of that, I need to cut my losses and defend what's most important rather than stretching myself thin."
The problem is obviously 'teaching' the AI to prioritize at least semi-intelligently... But, my two cents are out there now.