Regarding the AI's behavior.

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Ment

Ignoring the tavern is a very bad thing. You should definitely build it on the first day (if you haven't already) and buy at least one hero. Then, I transfer their troops to the main hero, and the purchased hero runs around empty, scouts the territory, and picks up whatever is lying around.

I know that you can play this way; I didn't think it was so important. %)

Ment

Third, this might also be worth mentioning. Just in case, I'll add that one elementary tactic will significantly reduce losses on neutral creatures: the "Elinich" tactic. You take your first-level hero and separate one creature from it into each new squad. In battle, you use them as a shield to absorb attacks so that the enemies don't touch the other, full-fledged squads.

I tried playing this way against neutral creatures. I created 1 squad in addition to the main one, with 1 creature. It didn't help much, especially in the case of archers, as the neutral squad attacks the squad that is larger. But next time, I'll try making 2-3 squads of 1 creature each. I need to practice more.

Ment

You also disable retaliatory attacks.

Can you elaborate?

Added 1 minute ago

Eleondor

You can always beat the AI. In the second or third week, it will only buy the basic increase, nothing more. In that time, you can improve 2-3 types of warriors and easily accept its challenge.

I understand that it's possible, but I haven't figured out exactly how.
So far, I haven't been able to lure it into a siege of my Castle.

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Regarding the AI's behavior.