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 (using rules to reach approximate or definite conclusions), and self-correction. AI systems can be classified into two main categories: narrow AI, which is designed to perform a specific task (like speech recognition or image classification), and general AI, which would have the capability to understand, learn, and apply intelligence across a wide range of tasks akin to a human being.

AI encompasses various technologies and methodologies, including Machine Learning, where algorithms are trained on data to improve performance on tasks over time; natural language processing, which enables machines to understand and interact using human language; and robotics, which integrates AI into machines capable of carrying out complex tasks in the real world.

Real-world applications of AI are extensive and growing, affecting various sectors such as healthcare, finance, transportation, and entertainment. Examples include virtual personal assistants, recommendation systems, autonomous vehicles, and diagnostic tools. As AI technology continues to evolve, its potential to transform industries and enhance daily life is rapidly increasing, raising important ethical, economic, and societal considerations.