Agreed. One of the strategic AI's main weakness is its shortsightedness. It's unable to see the larger picture when considering whether to attack someone -- all it can see is that a border province belonging to Faction A is under-defended, but fails to realize that Faction A has large armies in the provinces next to it. The AI needs to consider a faction's overall military and economic strength when determining whether to go to war with that faction, not just the local situation.
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