The acronym 'AI' stands for Artificial Intelligence in the context of computing. AI refers to the simulation of human intelligence processes by machines, which includes learning, reasoning, and self-correction. It encompasses various technologies such as machine learning, natural language processing, and computer vision, enabling computers to perform tasks that typically require human intelligence. AI is applied in diverse fields, including finance, healthcare, and automotive, transforming industries by enhancing operational efficiencies and providing innovative solutions.