Artificial intelligence (AI) is often misunderstood and erroneously narrowly equated with tools like ChatGPT. This chapter clarifies what AI truly is, moving beyond common myths and media hype. It defines AI as technologies designed to simulate intelligent behaviors—spanning machine learning, natural language processing, computer vision, and generative AI. Using everyday examples like voice assistants, navigation apps, and content recommendations, the chapter reveals AI’s pervasive but often overlooked role in daily life. It underscores the need for technological literacy, showing how misunderstandings can fuel both unwarranted fears and uncritical enthusiasm. By explaining how different AI systems work together to perform complex tasks, the chapter promotes a more grounded and realistic understanding. Ultimately, it lays the foundation for informed, ethical engagement with AI in education and beyond—equipping readers to participate in conversations about AI risks, benefits, and appropriate use.