From the information gathered here I assume that the script gives all AI factions some amount of gold to improve their competitiveness. The amount depends on the difficulty level. But can someone confirm that AI can recruit unlimited number of units from any city not depleting its population?

If so, is there a way to disable this? I can live with the AI getting money out of nowhere, but I think that if the AI can also produce unlimited units from any town it owns, it throws the whole concept of strategy and attrition war out of the window.