In a recent play-through of Alpha Centauri I encountered some strange AI behaviour:
As governor of the planetary council I lifted the atrocity ban. Then I allied with one faction and dropped a couple of planet busters on the rest. I quite enjoyed that, got a bit carried away and some of the cities of my ally accidentally got caught in the blast waves. Funny thing is, the ally didn't complain at all.
So why did I get away with it? Does the lifted atrocity ban allow for collateral damage? Or do allies not care about collateral damage? Or does the AI never care about collateral damage?