AI has the same information, the same options and the same freedom of choice as a player. It has to play the game in the same way: to move every single unit, to build every single city improvement, to specify every single statement in negotiations. Nothing happens without the AI code doing it.
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Note that programming AI on this level is difficult. As a human player, you're using a lot of intuition, which a computer doesn't have. For example, the AI has to <i>calculate</i> things like what a continen