Harder difficulty on the campaign map means the AI has a much better income, can handle civil order very easily (you'll find towns with just a governer in it), fields bigger (not greater, just bigger) armies, and never surrenders. As far as d/l a mod, I would just wait for the patch which is supposed to improve diplomacy. On Vh/vh, the AI never agrees to a ceasefire (in my experience) and is near impossible to bribe. Trade, maps, and "alliances" seem unaffected.
Harder difficulty on the battle map means the AI has a better attack and moral boost. To my knowledge, the tactics are exactly the same as before.
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