The all seeing A-eye is in this version too. It knows where all your cities are, and how well it's defended, even if it does not have a unit within the city line of sight. Just like it know the position of all your units, and location of all the goody huts. This has always been part of the Civ series. It is one of the things I REALLY dislike about the core game. However, it's blatant cheat has certain drawbacks for the AI.
If I want to draw the AI towards a specific area, I will leave a city undefended, or with a single weak unit. Directly on the other side of the city from the advancing AI I will place an army (on a road) and wait. when the AI moves next to the city, the army moves in and destroys as many AI units as possible (usually all of them). An added benefit is any damaged units are right there in a city for fast healing. To make this work best, of course you have to have all your other cities defended well.
Another handicap it causes, is I don't have to hunt for goody huts as dilligently. If i come across an AI unit exploring, I just track it to the hut and beat it to it (most of the time).
The frustrating thing is that if the game were programmed a bit differently, without the A-eye cheat, these tactics would not work. I guess it's easier to program it the way it is. If programmed honestly, I think the AI would be a lot harder to beat. imho
It's also how the AI seems to be able to hunt down your weak field units, while avoiding your big armies.
The xml info shows how the AI will deal with a given situation, but it does not show how it "sees".