Discrete:

-A discrete Environment consists of a finite number of states and agents have a finite number of actions. Discrete AI environments are those on which a finite [although arbitrarily large] set of possibilities can drive the final outcome of the task

-Example:  Choices of a move (action) in a tic-tac game are finite on a finite number of boxes on the board (Environment).hess is also classified as a discrete AI problem.

Continuous:

-While in a Continuous environment, the environment can have an infinite number of states. So the possibilities of taking an action are also infinite. Continuous AI environments rely on unknown and rapidly changing data sources.

- Example: In a basketball game, the position of players (Environment) keeps changing continuously, and hitting (Action) the ball towards the basket can have different angles and speed so infinite possibilities. Vision systems in drones or self-driving cars operate in continuous AI environments.