Proper Use of Nuclear Weapons?

In my first game in Warlords I actually saw an AI nuke another AI, who did not have nukes yet. That was the first nukes used in that game.

In my second game Frederick had lots of nukes and as a test I started a conventional war with him and he never nuked me, perhaps because I had my own nukes.

So maybe the AI strategy is to only use nukes when the enemy has none or it could have something to do with aggressiveness of the specific leader. With warlords the AI is certainly much more likely to build nukes and use them too.
 
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