Evaluation of an AI model refers to the process of assessing the performance of a machine learning model using various metrics such as accuracy, precision, recall, and F1-score. It helps in understanding how well the model performs on both training and unseen data. Overfitting occurs when an AI model learns the noise or details from the training data to the extent that it negatively impacts the model’s performance on new data. Overfitting leads to high accuracy on training data but poor generalization to real-world scenarios.