diff --git a/binaries/data/config/default.cfg b/binaries/data/config/default.cfg
index 7974f5059f..19a1795d55 100644
--- a/binaries/data/config/default.cfg
+++ b/binaries/data/config/default.cfg
@@ -337,6 +337,7 @@ scale = 1.0                       ; GUI scaling factor, for improved compatibili
 [gui.gamesetup]
 enabletips = true                 ; Enable/Disable tips during gamesetup (for newcomers)
 assignplayers = everyone          ; Whether to assign joining clients to free playerslots. Possible values: everyone, buddies, disabled.
+aidifficulty = 3                  ; Difficulty level, from 0 (easiest) to 5 (hardest)
 
 [gui.session]
 camerajump.threshold = 40         ; How close do we have to be to the actual location in order to jump back to the previous one?
diff --git a/binaries/data/mods/public/gui/gamesetup/gamesetup.js b/binaries/data/mods/public/gui/gamesetup/gamesetup.js
index 5136c68a61..615b5ddb28 100644
--- a/binaries/data/mods/public/gui/gamesetup/gamesetup.js
+++ b/binaries/data/mods/public/gui/gamesetup/gamesetup.js
@@ -1015,11 +1015,14 @@ function initDefaults()
 	// Remove gaia from both arrays
 	g_DefaultPlayerData = clone(g_Settings.PlayerDefaults.slice(1));
 
+	let aiDifficulty = Engine.ConfigDB_GetValue("user", "gui.gamesetup.aidifficulty");
+
 	// Don't change the underlying defaults file, as Atlas uses that file too
 	for (let i in g_DefaultPlayerData)
 	{
 		g_DefaultPlayerData[i].Civ = "random";
 		g_DefaultPlayerData[i].Team = -1;
+		g_DefaultPlayerData[i].AIDiff = aiDifficulty;
 	}
 
 	deepfreeze(g_DefaultPlayerData);
diff --git a/binaries/data/mods/public/gui/options/options.json b/binaries/data/mods/public/gui/options/options.json
index c3b2da563b..f8c9acb7a2 100644
--- a/binaries/data/mods/public/gui/options/options.json
+++ b/binaries/data/mods/public/gui/options/options.json
@@ -33,12 +33,6 @@
 				"tooltip": "If you disable it, the welcome screen will still appear once, each time a new version is available. You can always launch it from the main menu.",
 				"config": "gui.splashscreen.enable"
 			},
-			{
-				"type": "boolean",
-				"label": "Enable Game Setting Tips",
-				"tooltip": "Show tips when setting up a game.",
-				"config": "gui.gamesetup.enabletips"
-			},
 			{
 				"type": "boolean",
 				"label": "Detailed Tooltips",
@@ -75,23 +69,6 @@
 				"tooltip": "Always show the remaining ceasefire time.",
 				"config": "gui.session.ceasefirecounter"
 			},
-			{
-				"type": "boolean",
-				"label": "Persist Match Settings",
-				"tooltip": "Save and restore match settings for quick reuse when hosting another game",
-				"config": "persistmatchsettings"
-			},
-			{
-				"type": "dropdown",
-				"label": "Assign Players",
-				"tooltip": "Automatically assign joining clients to free player slots during the match setup.",
-				"config": "gui.gamesetup.assignplayers",
-				"list": [
-					{ "value": "everyone", "label": "Everyone" },
-					{ "value": "buddies", "label": "Buddies" },
-					{ "value": "disabled", "label": "Disabled" }
-				]
-			},
 			{
 				"type": "dropdown",
 				"label": "Late Observer Joins",
@@ -352,6 +329,49 @@
 			}
 		]
 	},
+	{
+		"label": "Game Setup",
+		"options":
+		[
+			{
+				"type": "boolean",
+				"label": "Enable Game Setting Tips",
+				"tooltip": "Show tips when setting up a game.",
+				"config": "gui.gamesetup.enabletips"
+			},
+			{
+				"type": "boolean",
+				"label": "Persist Match Settings",
+				"tooltip": "Save and restore match settings for quick reuse when hosting another game",
+				"config": "persistmatchsettings"
+			},
+			{
+				"type": "dropdown",
+				"label": "Default AI difficulty",
+				"tooltip": "Default difficulty of the AI.",
+				"config": "gui.gamesetup.aidifficulty",
+				"list": [
+					{ "value": 0, "label": "Sandbox" },
+					{ "value": 1, "label": "Very Easy" },
+					{ "value": 2, "label": "Easy" },
+					{ "value": 3, "label": "Medium" },
+					{ "value": 4, "label": "Hard" },
+					{ "value": 5, "label": "Very Hard" }
+				]
+			},
+			{
+				"type": "dropdown",
+				"label": "Assign Players",
+				"tooltip": "Automatically assign joining clients to free player slots during the match setup.",
+				"config": "gui.gamesetup.assignplayers",
+				"list": [
+					{ "value": "everyone", "label": "Everyone" },
+					{ "value": "buddies", "label": "Buddies" },
+					{ "value": "disabled", "label": "Disabled" }
+				]
+			}
+		]
+	},
 	{
 		"label": "Lobby",
 		"tooltip": "These settings only affect the multiplayer.",