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With that particular example, a citizen could very well also be an armed insurgent. Whether that citizen/insurgent is an ally or neutral or enemy is the distinction worth solving (even if it's significantly harder for an AI).

Of course, that matters far less when Skynet decides that every human is a hostile armed insurgent...

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I am assuming that would be solved by having the AI also take in inputs of where your troops and allies are located. Perhaps with something like the Blue Force Tracker [0].

One of the first priorities of an operation is not knowing where your enemy is, but where you are.

0: https://www.viasat.com/products/blue-force-tracking-2

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