Yes, AI is dumb: it simply does not know how to assault a stone-walled city properly. It also does not know how to defend one - when I am attacking stone walls the fortifications provide clear bonus against the defending AI. My question is not "Are walls good against AI?" but rather "Is the conception of walls flawed in your opinion?" IMHO, the conception is flawed. Fortifications provide some benefit for competent defender but not much when the attacking army is much larger (which should usually be the case).
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