An AI assistant is software that assists humans by performing tasks, offering services, and complementing human intelligence through capabilities like natural language processing, machine learning, and reasoning. There are challenges to building effective AI assistants, such as developing the assistant's knowledge base through training, adapting assistants to new domains, evaluating assistant performance, gaining user trust while protecting privacy, and teaching assistants what tasks to complete and how to take proactive actions. Overall, AI assistants aim to form partnerships with humans that amplify our intelligence in new ways.