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I never use that setting, but from what I've read in this forum in the past, it determines how aggressive the AI is in combat but has nothing to do on how likely it will declare war. For example, if the standard AI will only attack an entrenched position at nothing less than 2 to 1 odds, a furious AI is willing to attack at 1 to 1 odds. Please note, I'm just using those values as an example. It may also affect when the AI desires to break off an attack or retreat.