Web 2.0 and AJAX describe the ability of web pages to request additional data on-demand. AJAX is part of a larger group of new JavaScript functionality developed by Prototype (prototypejs.org) and extended by script.aculo.us (script.aculo.us) that has come to popular use throughout the internet.
These provide dynamic in-page functionality previously not available to web sites in a way that is consistent across all browsers. This includes AJAX, drag-and-drop functionality and areas of content that can expand and collapse on-demand. It also includes gradual highlighting and fading of elements in order to achieve more intuitive user interfaces. Prior to these technologies, such effects were difficult to achieve in all web browsers. One implementation might work in Internet Explorer but would fail to work in Netscape, or vice versa. Thanks to Prototype, those days are over. And the use of JavaScript as a means to spruce up web pages and add additional functionality is more a reality than ever before.
Ruby on Rails comes with Prototype and script.aculo.us built-in, allowing us to develop richer and more intuitive web pages without affecting the usage of the page for those with older web browsers.