Augmented reality (AR) enhances real-world environments by overlaying digital information and objects onto the real world, such as directions, images, and more. The document discusses how AR has evolved from early prototypes that placed virtual objects onto camera views to modern applications like Pokémon Go and Project Tango that use computer vision and digital processing to seamlessly blend virtual and physical environments. AR provides many benefits by allowing users to measure spaces, plan buildings, and help treat phobias or assist blind people by enhancing their view of the real world.