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And really everything else has been said so this is what I got to say about it.
1) It means you don't have to fight them. Actually more it now means that they will also now focus their armies on other factions too. So you've gained defence on the part of the map they are in and you don't have to do anything much to keep that defence.
2) Share map - esp in the early game this can help you get a better feel for the shape of the map without having to risk sending your own units off into the dark on their own. This means you know the terrain; resource points; other faction locations and more.
3) Trade - more income is good and setting up trade with an ally means more income for you and no work to gain it.
Now of course there are downsides; AI allies can
1) Get their units in the way of your units on the map. As each hex can only hold one unit at a time the AI might flood a region you want to work in with their own units. This might slow your advance; complicate your own movement and even see your army get fragmented.
2) They hold resource points you want. Not much to expand on, but if your allied to another faction then what they take is theirs. So you might end up with one side of the map having resources you can't access. OF course trade helps balance this out.
3) They might get involved in wars and bring you in with them so suddenly you've got another aggressive player that you weren't ready for at the time.
Overall allies are a powerful tool to have in the game if you're not playing with fixed-teams. Sometimes you'll want to maintain an ally long into the late game, even if its just to have a buffer whilst the end-game monsters are tearing through everything and thus giving you time to prepare; tech up and build up.
Other times you might only want to ally in the short term to position your own army in just the right spot to them hit them hard when you end the alliance and take them out in a brutal betrayal.