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"Everything starts as somebody's daydream. And, when you're daydreaming, it is science fiction. It's when you start work out how you put it together, true science fiction becomes real science."
- Larry Niven

Artificial Intelligence  
  A machine or other created system able to respond in a human-like way to questions or problems.  

As far as I know, the first use of the term "artificial intelligence" in science fiction, and perhaps the first use of this phrase in its modern sense.

Grag, the towering manlike giant who bore in his metal frame the strength of an army and an artificial intelligence equal to the human, rumbled a question in his deep booming voice. But Curt Newton only vaguely heard him. His gaze had followed Joan’s out into the alien night. This was not his first visit to Europa.
Technovelgy from Moon of the Unforgotten, by Edmond Hamilton.
Published by Startling Stories in 1951
Additional resources -

This phrase was used in the 19th century, but not in the sense of a sentient machine. For example, in Mr. Gladstone's Work, an essay by R. Giffen published in 1869 in The Fortnightly Review:

He has been compelled to create an artificial intelligence, an artificial agitation, to supply the place of feelings his predecessor had at command.

Or earlier in this article Present Inefficiency in the Jury System in The Law Magazine, Or, Quarterly Review of Jurisprudence (1849):

While therefore we would desire our juries to be moulded after a higher standard, we do not mean that we want in them a superior degree of particular, partial or artificial intelligence, but a legal guarantee for greater general and judicial talent.

The Oxford English Dictionary lists the following proposal as the first use of the phrase "artificial intelligence":

"A Proposal for the Dartmouth Summer Research Project on Artificial Intelligence" authored by John McCarthy [credited with coining the phrase], Marvin Minsky, Nathaniel Rochester, and Claude E. Shannon.

The proposal aimed to study if machines could use language, form abstractions and concepts, solve kinds of problems now reserved for humans, and improve themselves.

The conference was actually held from June 19 to August 16, 1956, at Dartmouth College; widely recognized as the birth of AI as a field of study.

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Additional resources:
  More Ideas and Technology from Moon of the Unforgotten
  More Ideas and Technology by Edmond Hamilton
  Tech news articles related to Moon of the Unforgotten
  Tech news articles related to works by Edmond Hamilton

Artificial Intelligence-related news articles:
  - Stargate $500 Billion Investment in Artificial Intelligence

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