Chapter 1 of 'Artificial Intelligence: A Modern Approach' introduces the concept of AI, its history, and advancements, particularly narrow AI and artificial general intelligence (AGI). It covers cognitive approaches, Turing's contributions, and the capabilities required for machines to act or think like humans, along with discussions on AI ethics, biases, and real-world applications. Recent advancements stem from powerful hardware, data availability, and machine learning innovations, leading to significant productivity improvements in various sectors.