Neural networks are powerful models that mimic the human brain and can perform complex tasks without human intervention. They consist of smaller units called perceptrons, which receive input multiplied by weights, pass it through an activation function, and give an output. Neural networks have three main layers: input, hidden, and output, which work together to extract patterns from data and predict outputs. The network processes data in four stages: forward propagation, loss calculation, back propagation, and weight update. There are various types of neural networks, including Convolutional Neural Networks (CNNs) for image recognition, Recurrent Neural Networks (RNNs) for sequential data, and Generative Adversarial Networks (GANs) for generating new data. Understanding and learning about neural networks can open opportunities in AI and continue to play a crucial role in driving advancements in the field.