Artificial intelligence is basically when a computer is able to do tasks, menial or not, that is normally reserved for human intelligence. Thats the actual definition of it, but there are two types of artificial intelligence. Weak Ai and Strong Ai. Weak Ai is when a computer is able to ACT intelligent. An example of this would be A.L.I.C.E. because although it responds to your questions, all of these answers were programmed. (
http://alice.pandorabots.com/ ) Strong Ai is when they really ARE intelligent. (Intelligent being: learning, problem-solving, reasoning, and the ability to understand language) Unfortunately strong Ai hasn't really been invented yet.