This book constitutes the refereed proceedings of the First International Conference on Artificial Intelligence and its Application, ICAIA 2023, held in Pune, India, during December 18-19, 2023. The 37 full papers and 3 short papers presented in these two volumes were carefully reviewed and selected from 217 submissions. The conference focused on three primary domains: Use of AI in Health Care; Machine Vision and Image Processing; Automated and Digital Manufacturing Systems.