There have been many threads debating whether the AI cheats.
There are two things that I would place under the "AI Cheat" list, because they really bug me.
1) The AI knows from the get go where the resources are before they are revealed by tech advances. That's why whenever I am able to build Iron Works, its in a city I conquered, not one I settled myself.
2) They know where my Privateer is even if its at the furthest point on the map from them. I built a privateer just to experiment, and sure enough, a couple of turns later, I've got AI ships entering my boundaries to blow it out of the water.
The latter point really bothers me. I mean, come on, how can the AI being able to 'see' every square, no matter how far away it is, be reasonable? Does that mean they can 'see' what is happening on EVERY square, how many units in my city, how many workers, etc? without using espionage tactics like humans players have to?
Personally, I think a Privateer should be 'safe' from attacks until at least it leaves the boundaries of the Civ that built it. Once it leaves, then it could be fair game, regardless of whether it retreats back into the cultural borders.
The way it is now, its like the Spanish Armada speeding out to the Indian Ocean to sink one Privateer that has not harrassed anyone - yet. Pretty unrealistic, if not an outright cheat.
