Artificial intelligence is a way for computers to think like people. Remember how your brain thinks when you try to solve a puzzle or remember something? Computers can be programmed to do that too! They have special software or programs that allow them to learn and make decisions and predictions without being told what to do every step of the way.
Picture a very smart robot that can see, hear, and talk just like a human. The robot has to learn what objects are, how to recognize people, how to talk and much much more. All this knowledge is taught to the robot via a program. Once the robot has learned enough, it can start making decisions on its own based on what it knows.
Some examples of things that use artificial intelligence are Siri or Alexa on your phone, self-driving cars, and robots that help people in hospitals. So when you're playing with your smart devices, you're using some artificial intelligence!