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Ambient Intelligence is a vision of the future information society stemming from the convergence of ubiquitous computing, ubiquitous communication and intelligent user-friendly interfaces. It offers an opportunity to realise an old dream, i.e. the smart or intelligent home. Will it fulfil the promises or is it just an illusion--offering apparently easy living while actually increasing the complexity of life? This article touches upon this question by discussing the technologies, applications and social implications of ambient intelligence in the home environment. It explores how Ambient Intelligence may change our way of life. It concludes that there are great opportunities for Ambient Intelligence to support social developments and modern lifestyles. However, in order to gain wide acceptance a delicate balance is needed: the technology should enhance the quality of life but not be seeking domination. It should be reliable and controllable but nevertheless adaptive to human habits and changing contexts.