Artificial intelligence is intelligence demonstrated by machines, in contrast to human intelligence. It involves developing computer systems that can perform tasks normally requiring human intelligence, such as visual perception, speech recognition, decision-making, and language translation. While AI provides benefits like more powerful computers and better handling of information, it also faces challenges including high costs, a lack of experienced programmers, and few practical products reaching the market so far. Potential applications of AI include chatbots, e-commerce, improving workplace communication, healthcare, cybersecurity, logistics, sports betting, manufacturing, and retail.