Does the AI factor allied city-states in your military score?

I recently played a game on Emperor as Siam and had every CS allied with me, but no AIs DOWed me the entire game even though my military was lacking. Was the AI factoring in each CS military strength as part of mine?

I'm not very familiar playing peacefully as I usually end up being very happy going to war

I shared close borders with Pacal and Hiawatha too, so it wasn't like I was isolated.

Yes, AI will factor in your city-states strength when evaluating player targets. It factors in the city-states' allies and city-states you've pledged to protect (for whatever reason ).

For each ally, it'll add:
backup_pathetic: 0
backup_weak: 0
backup_poor: 5
backup_average: 15
backup_strong: 25
backup_powerful: 35
backup_immense: 50

The game then multiplies that value by distance:
distant: * 1 (no change)
far: * 1.15 (small change)
close: * 1.5
neighbors: * 2

The chances the AI will view your city-states as anything more than poor is remote, since they generally don't field large armies.

This value is added to the final assessment, which factors in your own military strength, city strength, distance, if you're at war with other players already...

Your final target assessment is:
>= 200: Impossible (will never attack)
>= 125: Bad (probably won't attack)
>= 80: Average (might attack)
>= 50: Favorable (probably will attack)
else: Soft (Get ready for war!)

If you're expanding aggressively, the AI will bump your target value down (more likely to attack)
If it's a Minor Civ and they've been at war for 50 turns, they'll bump the target value up (less likely to attack / wants to make peace)