Briefly:
You set the unit scale. This has an impact on the size of all armed forces, throughout the map. The CS calculate's the GarissontoPopultation ratio of a certain settlement depending on what faction you are. This value triggers a couple of other traits and variables, which in turn affect the size of the scripted population bonuses the AI receives for each settlement every time it recruits a unit.
Possible results from messing with it, without entering your own "unit scale class" in the CS:
So let's say your units are in fact pretty large, but the ratio falls within the limits that affect a relatively low bonus: then you'll find that the AI is running out of population relatively quick. On the other hand: you lowered your unit size a little, but the ratio remains within the relatively large bonus area; you may find the AI in control of all hughe cities when you have yet to see your first.
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