This paper addresses the characteristics and applications of artificial intelligence (AI) as a subsection of computer science, and briefly describes the most common types of AI programs: expert systems, natural language, and neural networks. Following a brief presentation of the historical background, the discussion turns to an explanation of how expert systems function; developers' as opposed to users' goals for expert systems; internal as opposed to external applications/utilization of AI; funding; and the market place for expert systems, including medicine, banking, planning assistance for professionals, and education. (3 references) (CGD)