That's what they tried to do in Civ5. Lot of people consider it a failure.
In CiV the problem was they programmed it so the AI doesn't play so much as to win as to play to ensure the human player doesnt. It often does things that, while they while they appear to be moves at winning are in fact just suicidal.
I agree with SJ - the AI is like a novice chess player; looking only at the board as it is now (what some call "1 move ahead" strategy). Experienced players look at every position not just for immediate gains but principally they have an end game outcome in mind. Thus, for example, and AI is offered a good trade deal, but refuses to take it because it is beneficial to a "rival", sadly that deal was for coal and now the AI cant build factories.
On the topic of navies, and having done some piece work game programming, it is indeed something to give the devs a stroke. In RL naval invasions are logistical nightmares and the asking the AI to deal with them is hard. The conecpt of Naval strategy is very different from land strategy. It isn't about beelining to towards enemy cities or units it is about notions like coastal defence, bombardment, escort, projection of power. The sea also creates massive pathing issues - it is such a massive "space" - it also acts like an extra dimension if you will complicating avenues of approach, shortest path. In fact it is this very "spatial" geometry of sea power that makes it so easy for humans and so hard for AI.
That isnt to say that land AI development is any easier but it at least it has the continuity of geography which reduces the spatial logic a tad.
Going back to the chess analogy - experienced players dont always thing of the single best move but rather in term of abstract strategy like zones of control, freedom of movement and positional strength - these are very abstract concepts. Most novice players like an AI will think in terms "what is the best move NOW" out of all the possible combinations (ie brute force). It isnt just about long term strategy but the very spacial dynamics. How do you code this kin dof abstract geometry and have it applied rationally. It isn't easy.
That being said. I think the reason a lot of folks (including myself) are so disappointed, is that CiV4 seemed to do everything a lot better with a lot more variables in play. Now this could in part be due to the fact that the game was getting so complex that even human players were unable to completely understand the system and didnt play as efficiently; thus making the AI look better. In civ5 the mechanics are easier to grasp thus the AIs short comings are more apparent. Secondly in Civ4 the alternate paths to victory other than domination are viable. Consequently the AI could win without being a military ogre.
So knowing all this - why am I disappointed. Simply because simplifying the game exposed the AI for what it was (a dumb bot) and destroyed the kind of immersion and fun you got from the earlier Civs with their "anything can happen" outlook from al the complexities in play. Civ 5s AI shortcomings are so more visibly apparent that it feels more like playing chess with an idiot than entertainment.
I agree 100% with the earlier poster about MoM - the AI was stinky (MOO series/HOMM series/EU series) but the entertaining value and the huge variability in what can happen made it still fun. These weren't smart AIs but they were smart enough to approximate an enetertaining opponent. The biggest complaint about CiV 5 by many is that it feels to "bland".. this is a case in point - there isnt this kind of uniqueness to the games as in earlier versions. The oversimplification exposed the stupid AI for what it was and it had no enjoybale trappinsg (random events, alternate wins, build your own units (SMAC/MOO), deeper diplomacy. character, game changing wonders, AI personalities). Each game of CiV 5 is the same boring linear gring that we cant help but focus on the AIs blunders.
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