The first time it happened, I approached the hero, but he wanted more gildar than I had, so I went back and sold a few things and saved for a couple of turns. as I was approaching him again, the AI recruited him, one turn before I got to him.
The second time, I saw the hereo up ahead and redirected my resesrch to be able to recruit him. When I completed the research, I went toward him, and just one turn from reaching the hero, one of the AI's attacked and killed him.
This is not a coincidence... the AI is using its "omnicient" knowedge of the playing field and my actions to gain an advantage.
So, in this sense, the AI IS cheating.