Just played a game of Warlords 3: Darklords Rising. I play solo and turn the other 7 players into computer operated "warlord" opponents. Sometimes I will give them personalities as well.
The game I just played right from turn one a computer opponent offered me an alliance and for a change I decided to accept it. Usually the computer pulls some treachery on me at some point but in this game they stayed allied for the entire game which lasted 67 turns.
I have never seen that before and it was an interesting experience.

The AI is pretty bad, even with personalities. At least the "Knight" versions. It's a beautiful game, just a shame there is no multiplayer. Some of the maps designed for online play look like alot of fun, but alas - the computer is very predictable and not versatile enough. :(

Why would you play at knight? You should play at Psycho (preferably with a hidden map and maybe fog of war) and all personalities set to warlord.

I also strongly recommend playing trying game modes, with my favorite is the one where each starting hero has a super powerful artifact (don't remember how it is called of the top of my head but it is awesome!).