I spent some hours this weekend looking into this.
I don't have the ability to put in a "no tech trading" feature (i.e. I write the AI, but I'll bring it up).
But I can have the AI be more picky about what it tends to trade.
So here's what I've done:
1) I have it be more picky about what it's willing to trade than it was before.
2) I have it less inclined to trade military technologies back and forth.
It doesn't sound like much but I think people will be pleased with the results.
As Shalkto points out, the AI doesn't treat the player any differentlyt than each other. The AI also doesn't trade techs with anyone they have poor relations with.
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