What is Artificial Intelligence? - Explanation & Meaning

Definition

Artificial intelligence (AI) is a branch of computer science focused on building systems capable of performing tasks that typically require human intelligence, such as learning, reasoning, problem-solving, and pattern recognition.

Technical explanation

AI encompasses multiple subdisciplines including machine learning (ML), deep learning, natural language processing (NLP), and computer vision. Machine learning algorithms learn patterns from data without being explicitly programmed, while deep learning uses artificial neural networks with multiple layers to learn complex representations. In 2026, foundation models — large pre-trained models such as GPT-5, Claude 4, and Gemini 2 — dominate the AI landscape. These models are trained on massive datasets and can be adapted to specific domains through fine-tuning or Retrieval-Augmented Generation (RAG). Three levels of AI are commonly distinguished: narrow AI (ANI), specialized in a single task; general AI (AGI), which would match human-level performance across all cognitive tasks; and super AI (ASI), which would surpass human intelligence entirely. In 2026, we remain in the era of narrow AI, though multimodal models capable of processing text, images, audio, and video simultaneously continue to push the boundaries.

How MG Software applies this

At MG Software, we integrate AI into the software solutions we build for our clients. From intelligent chatbots and document analysis to predictive models and automated workflows, we help businesses deploy AI practically using state-of-the-art LLMs and custom RAG systems.

Practical examples

• An insurance company using AI to automatically analyze and classify claim forms, reducing processing time from five days to four hours.
• An e-commerce platform leveraging AI-based recommendations to offer personalized product suggestions, resulting in a 23% revenue increase.
• A healthcare institution deploying AI models to analyze medical images and support radiologists in early detection of abnormalities.

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