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 ability to solve problems through logical deduction), and self-correction. AI technologies can be categorized into two main types: narrow AI, which is designed to perform specific tasks, and general AI, which aims to understand, learn, and apply intelligence in a human-like manner across a wide range of tasks.

Narrow AI includes applications such as virtual personal assistants (like Siri or Alexa), recommendation systems (as seen on platforms like Netflix and Amazon), and image recognition software. General AI, which is still largely theoretical, envisions machines that possess cognitive functions similar to humans, enabling them to understand context, adapt to new information, and operate across varied domains without specific programming.

AI is driven by algorithms and data, often utilizing Machine Learning and Deep Learning techniques, where systems improve their performance given more data. The impact of AI is profound, transforming industries such as healthcare, finance, and transportation by enhancing efficiency, accuracy, and decision-making capabilities. Despite its benefits, AI also raises ethical and societal questions, including issues related to employment, privacy, and the potential for bias in decision-making processes.