I thought the AI didn't know the status or locations of my units until last night.
I was at war and the AI was pilliging my fishing boat locations and such (as they always do). Anyway, an AI galley pillaged one location and set off down my coast to get another fishing boat. After it set off and was out of line of sight, I moved a new fishing boat out of my coastal city. That galley turned and went right towards that fishing boat unit, even though it should not have known of it's existance. So my conclusion was the AI does have some knowledge of unit positions, thus the state of defenses, even though they are not supposed to.
I was at war and the AI was pilliging my fishing boat locations and such (as they always do). Anyway, an AI galley pillaged one location and set off down my coast to get another fishing boat. After it set off and was out of line of sight, I moved a new fishing boat out of my coastal city. That galley turned and went right towards that fishing boat unit, even though it should not have known of it's existance. So my conclusion was the AI does have some knowledge of unit positions, thus the state of defenses, even though they are not supposed to.