To provide background on the appropriate division of labour between humans and AI, this chapter explores the capabilities and limitations of intelligent machines compared to human abilities. Powered by AI, intelligent machines can perform certain human-like functions using sensors and networked systems. They excel at tasks that require precision, mathematical computation, and data analysis. However, they lack the holistic and flexible thinking that is inherent in humans and driven by sensory experiences and social understanding. This chapter delves into the concept of intelligence, defining it as the ability to reason, plan, solve problems, learn, and understand. It highlights the differences between human and machine intelligence, emphasising the latter’s reliance on preprogrammed categories and probabilistic predictions. It also discusses the challenges of modelling complex real-world scenarios and the limitations of AI in creative and moral decision-making. Furthermore, it contrasts the role of human empathy and perspective-taking in navigation and cooperation with the machine’s precise but limited capabilities. Ultimately, this chapter advocates a complementary approach where human and machine intelligences collaborate to solve complex problems such as climate change through hybrid intelligence and human-AI teaming.