Unit 1 of the document introduces artificial intelligence and machine learning. It discusses how AI solves real-world problems by simulating human intelligence and modeling problem-solving processes. It also covers machine learning models like supervised, unsupervised, and reinforcement learning. Additionally, it introduces popular Python libraries for artificial intelligence like NumPy, Pandas, scikit-learn, and TensorFlow. The role of Python in AI is also discussed along with Anaconda and how to install Python libraries.