Originally Posted by
pwf224
The AI gets a money script every turn based on the number of settlements it has. It also gets a debt script which keeps it out of debt, but barely. This allows the AI to perform better, seeing as without extra money, they are extremely easy to beat. I suggest that you use the add_money cheat if you really feel like it is too challenging or unrealistic for you. The extra money is really the only way to get the AI to act semi intelligent. Try working on your economy more as well, and you shold be able to support larger armies.
Strategies I use:
1) 3:1 City:castle ratio, sometimes even higher.
2)Focus initially on mines, port, farms, roads, markets in that order at first. This will build up your income. Once you become a little more advanced, then focus much more on ports and roads and markets to facilitate trade.
3) Occupy or sack towns. Do not exterminate unless the population is extremely resentful of you. The population you have, the more you get from taxes.