@Benevolent Dictator yes, yes it can. I have been tweaking some values (and these are not perfect at all, but better than the original) and there are options for making the AI more aggressive and still have money.
These values are to help with more units:
UPDATE PseudoYields SET DefaultValue = 5 WHERE PseudoYieldType = 'PSEUDOYIELD_STANDING_ARMY_NUMBER'; -- was 1
UPDATE PseudoYields SET DefaultValue = .5 WHERE PseudoYieldType = 'PSEUDOYIELD_STANDING_ARMY_VALUE'; -- was 0.1
And then, what you have to do is to take away the "disband all units at all costs for a rocket" given to us in the April 2021 patch:
UPDATE AiFavoredItems SET Value = 15 WHERE ListType = 'ClassicalYields' AND Item = 'YIELD_SCIENCE'; -- was 150
This was a broken patch that was never fixed. For the record, the value of 15 might be better left at another number, but certainly it helped. (what it helped with is the AI focusing a bit more on money and less on science). Another adjustment:
DELETE FROM AiFavoredItems WHERE ListType = 'ClassicalDistricts' AND Item = 'DISTRICT_CAMPUS';
DELETE FROM AiFavoredItems WHERE ListType = 'ClassicalDistricts' AND Item = 'DISTRICT_THEATER';
I made some other adjustments, but the key is to make sure to use the Extended Eras mod -- otherwise tech is so fast it isn't even fun anymore.
That standing army change from .1 to .5 means that in the ancient era I see AI's with military value of 1500+. It's insane. But alas, I still can't get the AI to be hyper aggressive unless of course you start next to them, even on Deity. The code they won't give us would be easily fixable, but they simply let us down.
Oh well, at least some of the above helps. I also play where every civ can have a religion (beautiful mod called Tomatekh's Historical Religions and enhanced by Religion Expanded by SeelingCat etc. -- 16 religions possible) and that helps with creating divides between players. But, the AI is still too passive imho.
To go back to the original question, AI's don't disband units in my games, I think just because of the lessening of the campus and theatre "favoritism". If they would start to disband, I would increase their gold. But, again, I'm playing on Deity (my original mod was for Immortal) so maybe there are enough bonuses to compensate. I'm not sure how this would work on a lower level (regarding gold).