Artificial Intelligence is a computer discipline that tries to program machines with some of the capabilities of human intelligence, such as learning, abstract reasoning, decision making, natural language recognition, complex pattern recognition, manipulating factual knowledge to draw conclusions and make recommendations, computer vision, agents, and robotics.
Over the years, as machines have accumulated a great deal of knowledge, the programs that accomplish this have rarely been called AI. Instead, they are known as "expert systems" or the like.
Whenever a machine is programmed with apparent intelligence, knowing exactly how we did it makes it seem much less than human intelligence.
In Alan Turing's famous Test a computer program would pass if a human being "talking" to the computer via a teletype connection could not tell whether the program was a human being or not.
The ultimate dream of the AI researchers is to design machines have become conscious, and self-conscious!
References:
John McCarthy - What is AI?
UCSD Turing Test page
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