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AI is transforming traditional automation into intelligent automation, fundamentally reshaping human-system interaction. This chapter reviews foundational research on human interaction with automation, including classic levels of automation taxonomies and empirical findings related to workload, situation awareness, and out of the loop performance. The chapter distinguishes between automation that replaces human functions and AI that augments and adapts human performance through capabilities such as information management, intent inferencing, error tolerant interfaces, adaptive aiding, and intelligent tutoring. A companion scale describing successive levels of AI sophistication is introduced and combined with traditional automation levels to form a two dimensional framework for system design. Three illustrative scenarios include driverless cars, autonomous aircraft, and healthcare decision support. These scenarios demonstrate how authority, responsibility, and coordination shift over time in human-AI systems. A summary near the end of chapter emphasizes human centered design principles and policy considerations that are necessary for the safe, effective, and socially responsible deployment of intelligent automation.