You must have heard about virtual reality. In virtual reality you are kept isolated from the real world. You interact with the digital information only; you remain disconnected from the real world. On the other hand Augmented Reality is actually a kind of add on to the real world. I mean to say layers of digital data are added to the real world. So you not only stay connected to the reality but you are supplementing it according to your needs.
Suppose you want a cartoon character to stay in your workspace right in front of you. This can be done by augmenting your reality. Augment means adding to. You could augment a virtual photo frame on your wall. You could put a virtual calendar right on your work table.
Have your watched X-Files, an old TV serial. A lady was augmented to the reality. That actually is augmented reality.
Well a lot of work is already done on this field. But the time when this technology gets matured the life would be made so easy to live. You would be able to add anything to your world. Could you even imagine that?
People would start keeping pets in augmented reality, and it would be the norm by then. How about augmenting a roommate to your reality? How about putting a virtual clock on the wall? Forget about keeping the big TV screens or projectors and a lot more things. This would really omit the need of those messy things, like TV screen, photo frames, and many other home and business accessories.
Researchers are working on it. You would be able to experience all those fantastic and interesting things in the next few years. This is a very vast field, and it would cover a very vast section of our life and needs. Stay tuned.