Elemental Forums
I think it would be useful for people to know, and I really want to know it! I've posted a new thread so people who are interested don't have to know it was referred to in https://forums.elementalgame.com/427194/get;3181585. 
Find the CoreDifficultyLevels.xml in the Data/English folder in the game directory. It should have these basic tags:
<AIDifficultyLevel InternalName="AIDiffLvl_Challenging">
<DisplayName>Challenging</DisplayName>
<AIEconomicRatio>1.0</AIEconomicRatio>
<AIFOWCheat>0</AIFOWCheat>
<AIHPRatio>1.0</AIHPRatio>
<AIStartingFundsRatio>1.0</AIStartingFundsRatio>
<AISovereignHPRatio>1.0</AISovereignHPRatio>
<AIUsesCombatMagic>1</AIUsesCombatMagic>
<AIIntelligenceFactor>1.25</AIIntelligenceFactor>
</AIDifficultyLevel>
<AIFOWCheat>0</AIFOWCheat> at 0 it does not see through the fog of war. At 1 it does.
You will notice some terrifying expansion and troop movement with this enabled. Not everyone's cup of tea, but the AI is not ready to exist with out IMHO.
Is there any way to create a new difficulty level, or do we have to change an existing one?
In theory yes. Just copy an existing one and change the internal and display name. The only thing I am not 100% sure about is AI Intelligence. I think that is the time the AI will take to make decisions, but it may also be the research bonus. Given that Challenging is a totally fair AI, it would seem that it is not research.
@seanw3. Could you maybe go and help the Warlock developers with some better AI as well 
I hate having a good game ruined by lack of AI
Wait wait... there is an AI in warlock? I thought that was random monsters.
Sincerely
~ Kongdej
Pff polite, thats sooo last year... 
Sincerely
~ Kongdej
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