Artificial Intelligence (AI) refers to the simulation of human intelligence processes by computer systems. This encompasses a variety of capabilities, including learning (the ability to acquire and apply knowledge), reasoning (the ability to draw conclusions and make decisions), and self-correction. AI operates through various techniques, such as Machine Learning, where algorithms are used to analyze data and improve performance over time, and natural language processing, which allows machines to understand and interpret human language.

AI can be categorized into two main types: narrow AI and general AI. Narrow AI, or weak AI, is designed to perform a specific task, such as facial recognition or playing chess. In contrast, general AI, or strong AI, would have the ability to understand, learn, and apply knowledge in a way that is indistinguishable from a human being — a capability that has yet to be realized.

The applications of AI are vast and include fields such as healthcare, where it can assist in diagnosis; finance, by detecting fraud; and transportation, with the development of autonomous vehicles. As AI evolves, it raises important ethical considerations, including issues of bias, privacy, and the impact on employment. Overall, AI stands at the forefront of technological advancement, shaping the future across numerous sectors.