People have used technology to improve themselves throughout the human history. From the ancient times, human beings tried to get their work done by human slaves or inanimate machines. To build intelligent agents each new technology has been exploited. Clockwise, hydraulics, telephone switching systems, holograms, analog computers and digital computers have all been suggested both as mechanisms for intelligent agent and as technological metaphors for intelligence. A new invention of computer system is known as Artificial Intelligence that can perform tasks with the help of human intelligence. Artificial Intelligence associated with computer systems which includes various types of intelligence: systems that understand new concepts and tasks, systems that are able to give reason and draw useful conclusion about the world around us, systems which can learn a natural language and comprehend a visual scene. Artificial Intelligence means intelligence that is demonstrated by machines. This is a device that recognizes its environment and takes action that increases the chances of achieving its goal. The research goal of Artificial Intelligence is to create technology which helps computers and machines to perform various tasks in an intelligent manner. Artificial Intelligence analysis the intelligent acts of computational agents. Computational agent is one whose decisions about his/her actions can be explained in terms of computation. His actions, firstly, may be broken down into primary operation that further can be applied in a physical device. Computations have many forms, for example: In humans, it is in the form of “wetware” and in computers it is in the form of “hardware”. Greatest advances have occurred in the field of game playing. Super computer named Deep Blue defeated world chess champion Gary Kasparov in May, 1997. This research article explains history, features and goals of artificial intelligence. It also explains various types of artificial intelligence like reactive machine,limited memory, theory of mind and self- awareness. This article focus on application of artificial intelligence in many fields like literacy, finance, heavy industries, hospitals, news, publishing, transportations, telecommunication maintenance, telephone and online customer services etc.