What is Friendly AI? From the glossary of Creating Friendly AI:

Friendly AI: 1: The field of study concerned with the production of human-benefiting, non-human-harming actions in Artificial Intelligence systems that have advanced to the point of making real-world plans in pursuit of goals. The term “Friendly AI” was chosen not to imply a particular internal solution, such as duplicating the human friendship instincts, but rather to embrace any set of external behaviors that a human would call “friendly”. In this sense, “Friendly AI” can be used as an umbrella term for multiple design methodologies. Usage: “The field of Friendly AI.”

2: An AI which was designed to be Friendly. Within the context of Creating Friendly AI, an AI having the architectural features and content described in this document. Usage: “A Friendly AI would have probabilistic supergoals.”

3: Friendly AI: An AI which is currently Friendly. See Friendliness. Usage: “The first AI to undergo a hard takeoff had better be a Friendly AI.”

And what, what, one might ask, is Friendliness?

Friendliness: Intuitively: The set of actions, behaviors, and outcomes that a human would view as benevolent, rather than malevolent; nice, rather than malicious; friendly, rather than unfriendly; good, rather than evil. An AI that does what you ask ver to, as long as it doesn’t hurt anyone else, or as long as it’s a request to alter your own matter/space/property; an AI which doesn’t cause involuntary pain, death, alteration, or violation of personal environment.

The reason why the definition is intuitive is because the precise definition has to be in terms of math. Math that gets programmed into the AI’s algorithms.

Why does the first AI matter so much? Why not ignore the first and just try to do a good job on the second, or the third?

Hard takeoff: The Singularity scenario in which a mind makes the transition from prehuman or human-equivalent intelligence to strong transhumanity or superintelligence over the course of days or hours.

Whatever you believe about AI improvement speeds, it’s best to assume a hard takeoff. This is because the costs of being wrong on this point are so very high. One more distinction, this time between “Friendship content” and “Friendship structure”:

Friendliness content: Defined in 1: Challenges of Friendly AI. The zeroth-order and first-order problems of Friendly AI; correct decisions and the cognitive complexity used to make correct decisions.  The complex of beliefs, memories, imagery, and concepts that is used to actually make decisions.  Specific subgoal content, supergoal content, shaper content, and so on.  See 1.4: Content, acquisition, and structure; see Friendship acquisition and Friendship structure.

Friendliness structure: Defined in 1: Challenges of Friendly AI. The third-order problem of building a Friendly AI that wants to learn Friendliness (engage in Friendship acquisition of Friendship content).  The structural problem that is unique to Friendly AI.  The challenge of building a funnel through which a certain kind of complexity can be poured into the AI, such that the AI sees that pouring as desirable at every point along the way.  The challenge of creating a bounded amount of Friendship complexity that can grow to handle open-ended philosophical problems.  See 1.4: Content, acquisition, and structure.

One of the most common errors in initially approaching the idea of Friendly AI is to confuse Friendship content with Friendship structure. Instead of transferring over a fixed set of rules a la Asimov laws (1. Thou shalt not kill, 2. Thou shalt have no gods other than me, etc.), the challenge is to create a dynamic process that generates the “rules” we want automatically. The idea is to create a moral philosopher whose statements and beliefs garner reactions like, “wow, I wish I’d thought of that”, not a mindless machine that we have to be constantly worried is going to interpret “make humans happy” as “recycle all organic matter on the surface of the Earth into constantly stimulated homonid pleasure centers”. Successful Friendly AI is supposed to be a self-guiding arrow - a threshold of confidence at which, there’s no reason to worry that you “forgot something”, because the AI is on your side and will implement whatever safeguards you would think of, and more.

For the questions you’re thinking of, like “isn’t all morality relative?”, see the CFAI Indexed FAQ.