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If you're just beginning and overwhelmed, then, yes, let the AI handle it.
When you get more comfortable then you can take more control.
There are no hard and fast rules about where to place players. I put them at the highest level there they won't be overmatched. I do this based on their ratings. Then, keep an eye on their performance. If they aren't performing, or at destroying the league (after at least a few months) then I move them.
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