The difference is that the AI at very hard has the same boni as you do (in addition to the cheats they have at EVERY difficulty level), as at the lower levels, it actually gets penalties.
However, the AI usually still won't be much of a challenge, as the main visible effect of higher difficulty will be their units being as tough as yours on the battlefield and their relations with you deteriorating faster on the campaign map (i.e. higher likelihood of them declaring war on you).
If you want to have a tougher AI, you probably will need to play with a mod![]()
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