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AI Applications can be roughly classified as:
Natural Language Processing: One of the application of AI is in the field of Natural Language Processing. NLP enabled interaction between computers and human language. Practical applications of NLP are in machine translation, Information retrieval, text categorization, etc. Few more applications are extracting 3D information using vision, speech recognition, perception, image formation.
Robotics: One major applications of AI is in Robotics. Robot is an active agent whose environment is the physical world. Robots can be used in manufacturing and handling material, in medical field, in military, etc. for automating the manual work.
Neural networks: Another application of AI is using Neural Networks. Neural Network is a system that works like human brain/nervous system. It can be useful for stock market analysis, in character recognition, in image compression, in security, face recognition, handwriting recognition, Optical Character Recognition Fuzzy etc.
Fuzzy Logic: Apart from these AI systems are developed with the help of Fuzzy Logic. Fuzzy Logic can be useful in making approximations rather than having a fixed and exact reasoning for a problem. You must have seen systems like AC, fridge, washing machine which are based on fuzzy logic