Artificial intelligence is the study of how to make computers do tasks that people do better, like processing large amounts of data without errors. It involves creating intelligent machines, especially intelligent computer programs. AI has two purposes - using computers to augment human thinking, and using AI to understand how humans think. Some applications of AI include games, expert systems, robotics, and natural language processing. However, AI still has limitations like limited ability, slow response times, difficulty handling emergencies, complex coding, and high costs.