Re: Problem of a NOOB
Each time a pretender dies it loses one level in each magic path. It may also come back with afflictions which further affect it's abilities such as feeblemind which will remove all magic paths until it gets healed.
There are several ways of removing afflictions such as the Chalice artifact, various national priests and some summoned leaders such as the faery queen. Not every nation has equal access to such affliction removers.
As to the AI cheating.. The AI gets more or less gold/resources depending on the difficulty you set them at.
Hope that helps.
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