Exactly. The AI just does the math based on the goals you've given it. AI would have happily nuked Hiroshima and Nagasaki because it would have estimated that doing so would save the lives of X number of US soldiers in a land invasion, and given a goal of achieving "unconditional surrender now", it wouldn't have considered that a land invasion wasn't imminently necessary and therefore killing 200,000 civilians wasn't the right moral choice.