"AI is the study of complex information processing problems that often have their roots in some aspect of biological information processing. The goal of the subject is to identify solvable and interesting information processing problems, and solve them." -- David Marr
"AI is the design, study and construction of computer programs that behave intelligently." -- Tom Dean
Computer can sense and recognize its users, see and recognize its environment, respond visually and audibly to stimuli. New paradigms for interacting productively with computers using speech, vision, natural language, 3D virtual reality, 3D displays, more natural and powerful user interfaces, etc. (See, for example, projects in Microsoft's "Advanced Interactivity and Intelligence" group.)