How does capitilization work in Civ3?

[Colwyn]

I want to know if the AI is able to select this in their build queue even without learning the advance.

This is in reference to being able to make a war scenario where by allowing the AI only to build units (changing prereq's) you make them build their replacements rather than Giving it to them.

In civ2 it didn't work b/c it would always select Capitization if it thought it had enough units.

Anyone able to check this.