Artificial Intelligence (AI) refers to the simulation of human intelligence processes by machines, particularly computer systems. These processes include learning (the acquisition of information and rules for using it), reasoning (the use of rules to reach approximate or definite conclusions), and self-correction. AI is often classified into two categories: narrow AI, which is designed for specific tasks such as image recognition or language processing, and general AI, which would have the ability to perform any intellectual task that a human can do.

Applications of AI can be found in various fields, including healthcare (for diagnostics and treatment recommendations), finance (for fraud detection and algorithmic trading), transportation (in autonomous vehicles), and customer service (through chatbots). Advanced AI systems utilize Machine Learning, a subset of AI that allows computers to learn from and make predictions based on data, as well as Deep Learning, which employs neural networks to process large amounts of unstructured data. Overall, AI technology has the potential to significantly enhance productivity and efficiency across numerous industries, however, it also raises ethical concerns, including job displacement and issues surrounding data privacy and security.