Power BI is a business intelligence tool that converts data from different sources into attractive dashboards and reports. It includes Power BI Desktop for creating reports, Power BI Service for publishing reports, and Power BI mobile apps for viewing reports and dashboards. Power BI Desktop can import or directly query data from various sources like files, databases, and the web. It allows users to transform, visualize, and analyze data to gain insights. The imported data is stored in the Power BI service, while direct query leaves the data in its source.