Artificial intelligence uses techniques like machine learning, artificial neural networks, deep learning, computer vision, and natural language processing to create intelligent machines that can learn from large amounts of data in an accurate manner similar to humans. It works by combining data with fast, iterative processing and smart algorithms to learn patterns and deliver outputs close to human level. Specifically, machine learning allows programs to learn from examples and experiences without being explicitly programmed, while artificial neural networks were inspired by the human brain to recognize complex patterns in data.