Artificial Intelligence (AI) refers to the simulation of human intelligence processes by computer systems. These processes include learning (the acquisition of information and rules for using it), reasoning (using the rules to reach conclusions), and self-correction. AI can be classified into two main categories: narrow AI, which is designed to perform a specific task (like voice recognition or playing chess), and general AI, which would have the ability to understand and reason about the world as a human does.

In practice, AI systems rely on a variety of algorithms and data to mimic cognitive functions. Techniques used in AI include Machine Learning, natural language processing, robotics, and computer vision. Machine Learning, a subset of AI, involves training models on large datasets so they can make predictions or decisions without explicit programming for each task. AI applications span numerous fields, including healthcare (for diagnostics), finance (for fraud detection), transportation (for autonomous vehicles), and customer service (through chatbots), significantly impacting how we interact with technology and making many processes more efficient.