Serverless architecture allows running code without managing servers by leveraging functions-as-a-service (FaaS) platforms like AWS Lambda. With serverless, developers gain scalable and highly available applications while only paying for compute resources used, without having to manage servers, scaling, or other operational aspects. AWS Lambda automatically handles tasks like load balancing, auto-scaling, failures and security isolations. Common uses of serverless include web applications, APIs, IoT services, and more.