does the AI ever give in to demands?

The AI is always willing to defensive pact with me but I would much rather kill them
 
as a couple other people noted, they will give into demands if you are obviously more advanced than them militarily, especially if you have lots of troops parked on their border. I cannot confirm on deity but I demanded things on immortal and had them agree. have had them give me cash, gold per turn and both luxury and strategic resources
 
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