What difficulty and handicap numbers are you using? I've quit playing for now because the AI gets either so much culture it's crazy or not enough of other stuff.
We really need AI to get 1/2 culture compared to other yields on handicap bonuses.
We'd need to determine to how much of the total culture pool handicap yields account for first; if handicap culture is 2/3 of the pool and you cut it in half, that means the AI is getting 33% less policies than it did before. I don't know about you, but in my games that would be a complete disaster for AIs.