Artificial Intelligence (AI) refers to the capability of a machine to mimic human cognitive functions such as learning, reasoning, problem-solving, perception, and language understanding. It encompasses a range of technologies and methodologies that enable machines to perform tasks that typically require human intelligence. AI systems can be broadly categorized into two types: narrow AI, which is designed for specific tasks (like language translation or facial recognition), and general AI, which hypothetically could perform any intellectual task that a human can do.

AI operates through algorithms, which are sets of rules or instructions that the machine follows to analyze data. These algorithms can use Machine Learning techniques, allowing systems to learn from data inputs and improve their performance over time. Deep Learning, a subset of Machine Learning, employs neural networks to emulate human brain functioning, allowing for more complex pattern recognition and decision-making processes.

Applications of AI are diverse and include areas such as healthcare (diagnosing diseases), finance (fraud detection), automotive (self-driving cars), customer service (chatbots), and much more. Despite its advancements, AI also raises ethical and societal concerns, including issues related to job displacement, data privacy, and the potential for biased decision-making. As technology continues to evolve, so too does the conversation around the implications of AI on our daily lives and future.