AI took the spotlight in 2023, sparking debate on its progress. 'Machine intelligence' emerged in the 1950s with the Turing test, challenging AI to be indistinguishable from humans in conversation. Eliza, created in 1966, was one of the first to pass this by mimicking a psychotherapist. Despite its simplicity, Eliza's design illustrates basic AI principles, using keywords and transformation rules to simulate conversation. The program, adaptable across languages, uses a basic response structure, synonym handling, and memory for more 'intelligent' interactions. However, Eliza is not true AI; it operates on pre-coded responses and patterns.