Artificial Intelligence (AI) refers to the simulation of human intelligence processes by machines, particularly computer systems. These processes include learning, reasoning, problem-solving, perception, and language understanding. AI can be categorized into two main types: narrow AI, which is designed to perform a narrow task (like facial recognition or internet search), and general AI, which possesses the ability to understand and learn any intellectual task that a human being can do.

AI systems typically operate using algorithms and statistical models to analyze and interpret data. Machine Learning, a subset of AI, allows systems to improve their performance on tasks over time based on experience, utilizing large amounts of data. Deep Learning, an even more advanced subset, uses neural networks with many layers to process complex data inputs, such as images or natural language.

Applications of AI are extensive and include areas such as natural language processing (enabling machines to understand and respond to human language), computer vision (allowing machines to interpret visual information), robotics (facilitating automated tasks), and recommendation systems (curating content based on user preferences).

As AI technology continues to evolve, it raises significant ethical and societal considerations, including issues of bias, privacy, and the future of work. Thus, the development and deployment of AI require careful scrutiny to ensure it benefits society as a whole.