Ajax allows for dynamically updating web pages without reloading the entire page. It uses a combination of technologies including HTML, CSS, XML, JavaScript, and asynchronous data retrieval. This allows parts of pages to update asynchronously by exchanging small amounts of data with the server behind the scenes. Benefits include more responsive interfaces, server bandwidth savings, and a more engaging user experience compared to full page reloads. Ajax is based on open standards and works across browsers without plugins. It plays an increasingly important role in modern web development.