The Abstract Factory pattern provides a way to encapsulate a group of individual factories that have a common theme without specifying their concrete classes. It allows a client class to work with families of related product objects independently of their representations. The pattern defines a factory interface for creating products but leaves the concrete product class implementation to the subclasses. There are two common approaches to implementing Abstract Factory - one uses a factory producer that returns the appropriate concrete factory based on a parameter, while the other directly passes the concrete factory. The pattern is useful for decoupling clients from implementations and enforcing constraints on valid class combinations.