Artificial intelligence (AI) refers to the simulation of human intelligence processes by machines, particularly computer systems. These processes include learning, reasoning, problem-solving, perception, language understanding, and decision-making. AI can be classified into two main categories: narrow AI, which is designed for specific tasks such as facial recognition or internet searches, and general AI, which aims to perform any intellectual task that a human can do.

AI operates through the use of algorithms and vast amounts of data, allowing systems to improve their performance over time. Machine learning, a subset of AI, enables computers to learn from and make predictions based on data. Deep learning, a further subset, uses neural networks to analyze various factors and complex datasets.

Applications of AI are vast and encompass areas such as healthcare, where it helps in diagnosing diseases; finance, for predictive analytics; autonomous vehicles for navigation; and customer service, where chatbots assist with inquiries. The development and deployment of AI also pose ethical considerations, including job displacement, privacy issues, and bias in decision-making processes. As technology evolves, the role of AI in society will continue to grow, raising both opportunities and challenges.