This chapter introduces the concept of ambient intelligence (AmI), a new concept in the area of information and communication technology (ICT), from a systems development perspective in the manufacturing environment. To create an AmI environment, requires the use of a combination of technologies. The AmI environment can be enabled through the use of computers that are embedded into everyday objects and through the use of wireless communication. The interaction between these embedded devices and the human user is improving through advancements in the area of natural interaction. The aim of the chapter is to provide a better understanding of AmI. To this end the following tools are presented, an AmI definition, typology, and taxonomy. The typology solidifies the understanding of AmI by highlighting the elements that need to be considered when developing an AmI system. The taxonomy shows the evolution of technologies towards development of AmI.