I think I know the cause of the problem with AI armies, that is: that they recruit tons of militia.
The AI uses military build policy in ALL their settlements (except for a city here and there which uses balanced)
I tested it on my campaign by setting it to military in all my own cities for a few turns, and sure enough, I had tons of militia pouring in. Then I set it back to balanced, and there was NO militia recruitment.
If we could find a way to make the AI use balanced build policy in its cities, their armies would be made up of castle units.
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