Neural networks are a subset of artificial intelligence designed to recognize patterns and make decisions based on data. They are inspired by the human brain's structure and function, consisting of interconnected nodes (or neurons) that process information in layers. This architecture allows them to learn from vast amounts of data, making them powerful tools for tasks like image recognition and natural language processing. The training process involves adjusting the connections between neurons based on the input data and the desired output. As the network learns, it becomes better at making predictions or classifications. Applications of neural networks can be found in various fields, including healthcare, finance, and autonomous vehicles.