The term was coined by Jesse James Garrett, currently the Director of User Experience Strategy at adaptive path.
His original essay, Ajax: A New Approach to Web Applications is a good starting point.

Ajax acts as an extra layer between a users browser and a web server. It handles server communication requests and processes the returned data which is integrated into the current page without needing to load a complete new page. This enables you to build web-based applications that run as quickly as software running locally.
What are the advantages and disadvantages of this approach?
Pros
reduces bandwidth
interactivity
don't need to download/install plugins
Cons
response times depend on network latency (the interval between a user request and the server response)
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