Type inference is a feature in programming languages that allows the compiler to automatically determine the data type of a variable without explicit type declaration by the programmer. For example, if you assign a number to a variable, the compiler infers that the variable is of type integer or float. This makes coding easier and cleaner, as developers can focus on logic rather than specifying types. In languages like Python or JavaScript, type inference helps streamline the coding process. It reduces the chances of errors related to type mismatches and enhances code readability. Overall, type inference simplifies development while maintaining type safety.