Yes, definitely, since patch 5, I do not see many "small" AI armies anywhere. That's on VH and Legendary difficulties. Any self-respecting 1 region minor AI maxes out their army allowance asap. The larger AI's: that's a different matter.
As to lower difficulties. On the weekend I played an MPC which was set to hard difficulty since we were going to play the battles as AI. I noticed that the AI armies I encountered were smaller/lower quality than the ones I tend to see in my VH/Legendary single player campaigns.
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