Artificial Intelligence is composed of two words - Artificial and Intelligence. Artificial means 'man-made' and Intelligence means 'thinking power', so together AI means 'a man-made thinking power'. Artificial Intelligence exists when a machine can have human skills like learning, reasoning, and solving problems. Examples of AI include autonomous planning on spacecraft, beating Kasparov at chess, driverless cars, language understanding, robotic surgery assistants, and monitoring stock markets for insider trading. Problem-solving agents in AI use search techniques and algorithms to rationally solve problems and provide optimal results.