Artificial intelligence (AI) is concerned with building machines that can act and react appropriately to demands. The document discusses the history of AI from early developments focusing on modeling the human brain to modern language processing programs. It also outlines some of the key problems in AI like deduction, reasoning, problem solving, and natural language processing. Tools used in AI development include search and optimization, logic, neural networks, and specialized programming languages. Applications of AI include medical diagnosis, robot control, scientific discovery, and more.