Neurons in the brain send signals along based on a set of simple rules. When a signal is sent to them, if it overcomes some minimum threshold value then they send it on to other neurons, otherwise they don’t. By varying this threshold value and connecting neurons in different ways, the brain is able to do amazing things.
Neural networks follow the same idea, but the neurons are bits of software or hardware instead of biological. The amazing thing about these structures is that by varying the thresholds and connections between neurons you can get them to handle nearly any sort of problem. You can also use methods (e.g. back propagation) to make neural networks “learn”, getting better and better at a task.
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