Understand how does AI work. and its applications in business. Artificial Intelligence (AI) works by simulating human intelligence through machine learning, deep learning, and neural networks. AI systems process large volumes of data, recognize patterns, and make decisions based on algorithms and predefined rules. Machine learning enables AI to improve over time by analyzing new data, while deep learning mimics human brain functions using neural networks. AI applications include natural language processing for chatbots, computer vision for image recognition, and reinforcement learning for decision-making systems. AI models require training with labeled datasets, continuous optimization, and ethical considerations to ensure accuracy, fairness, and reliability.