The term Artificial Intelligence (AI) corresponds to a machine that possesses an ability to "Reason".
A more complete list or AI characteristics (source David Kelnar) is -
Reasoning: the ability of a machine to solve problems through the process of logical deduction
Knowledge: the ability of a machine to represent knowledge about the world (the understanding that there are certain entities, events and situations in the world; those elements have properties; and those elements can be categorized.)
Planning: the ability of a machine to set and achieve goals (there is a specific future state of the world that is desirable, and sequences of actions can be undertaken that will effect progress towards it)
Communication: the ability of machine to understand written and spoken language.
Perception: the ability to deduce things about the world from visual images, sounds and other sensory inputs.
3 broad categories of Artificial Intelligence -
Artificial Narrow Intelligence ( ANI ) : Also known as "Weak AI " , is a type of machine which is programmed to specialize in one specific area . Ex : an AI system that is built to play Chess and which can beat the world chess champions but cannot perform the task of image recognition.
Artificial General Intelligence ( AGI ) : Also known as "Strong AI" . In a very basic layman term , an Artificial General Intelligence is the intelligence of the machine that could successfully perform any intellectual task which any human being can perform.
Artificial Super Intelligence ( ASI ) : A form of AI which achieves a 'Degree of Intelligence' which surpasses the cumulative intelligence of all humanity combined.