As Sneaksie said, the AI does NOT change - It will still employ the same tactics, still have the same general skill and abilities, the only thing that changes will be accuracy and vehicle penetration chances, both of your units and the enemies.
It's common for most other games to simply make the enemy stupid and non-challenging when you reduce the difficulty - Personally I think ToW have gone with a better alternative, you can still feel as if you "won" without feeling you were fighting a pathetic opponent. Most the time you just think you got lucky with your AT guns or vehicles, but you know it was still your skills which allowed you to win.
For example:
Say you play 10 games on normal - If you have 5 tanks against 5 enemy tanks (equal quality tanks, same gun/armour etc..) no moving around just staying in the one position and firing at eachother - It will be a fair fight, sometimes you will win, sometimes the enemy will win. Probably depending on who fires first and who gets more "lucky" shots in.
If you play the same scenario 10 times on easy mode, you will win a higher % of the games - Your units will be more accurate, and the enemy less accurate - Their armour will also be more likely to be penetrated.
If you then play it on Hard difficulty, the enemy will be a crackshot and you will find that your vehicles don't last long at all.
Morale is another factor - If you play with it on, losing a commander can have devestating results - If you disable this they won't be routed so easily and will continue to fight even under overwhelming enemy forces.
To sum up:
AI remains the same, no matter the difficulty. You will not be able to overrun them with sheer numbers alone like a standard RTS game. Tactics will always remain important.
Accuracy/Penetration chances are the only thing which are adjusted. This does make the game easier though, and your vehicles aren't as easily destroyed.
This is a hard game, yes, but it's also very rewarding when you do win - With a bit of patience you will master it in no time, just take things slow and try to employ proper tactics.
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