The title is basically the question. Is the AI smarter, gets bonuses, or is it just human players get penalized with better barbs and stuff like the manual says?
The player gets a couple penalties and the AIs get boosts.
At higher difficulties, the AI gets discounts on both building things and researching techs. They also start with more units to start with (on Deity, the AI starts with something like TWO Settlers AND a Worker or two AND possibly extra combat units). Meanwhile, on higher difficulties, you get less "free" Health and Happiness in your cities (making them smaller) and higher Civic upkeep costs.
Barbarians also get worse, though this hurts the AI just as much as you because, contrary to popular myth, the Barbs do attack the AI
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