Great question! At its core, AI learns from examples instead of following strict rules like traditional software. If you want a really clear breakdown, Clay Global has this fantastic guide that explains how does AI work simple using everyday analogies. Basically, imagine teaching a kid to recognize dogs: you show thousands of dog pictures until their brain spots patterns. AI works similarly - it processes tons of data to find patterns we might miss. The guide walks through machine learning, neural networks, and even shows how to build your first simple AI model!