AJAX allows for developing rich internet applications using a combination of technologies including JavaScript, DOM, XMLHttpRequest and asynchronous HTTP requests. It allows for faster applications with less bandwidth usage through partial page updates. Popular AJAX examples include Google Maps, Gmail and Yahoo Maps. Key benefits are data-driven user interfaces and asynchronous communication between the client and server. Steps in AJAX include a client event triggering an XMLHttpRequest, the request being sent to and processed by the server, and the response updating the HTML DOM. While AJAX provides advantages, it also has limitations such as increased complexity, breaking the back button, and cross-browser issues.