The AutoCloseable interface in Java is designed to simplify resource management, particularly for objects that require cleanup after use, such as files or database connections. When a class implements this interface, it must define the close() method, which contains the code to release resources. This allows developers to use the try-with-resources statement, ensuring that resources are automatically closed when they are no longer needed. Using AutoCloseable helps prevent resource leaks, which can lead to performance issues or application crashes. By automatically managing resource closure, it promotes cleaner and more maintainable code, making it easier for developers to handle exceptions and ensure proper resource management.