- AI can see through fog of war, but pretends it can't in most cases.
This is pretty much not cheating if they pretend they can't - after all the computer will always know where all your troops, there's no avoiding that.
I don't buy the assertion that it pretends it doesn't. It will react to move orders to attack it from outside its view consistently. Consistently enough, in fact, for me to screw with its pathing or get it to lift sieges without having to go there, turning its cheat on itself.
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