Artificial reality was the term Myron W. Krueger used to describe his interactive immersive environments, based on video recognition techniques, that put a user in full, unencumbered contact with the digital world. He started this work in the late 1960s and is considered to be a key figure in the early innovation of virtual reality. His first book Artificial Reality was published in 1983 and updated in Artificial Reality II in 1991 (both published by Addison-Wesley).
In modern language "Artificial Reality" is often used to describe a virtual reality that is indistinguishable from reality. This in contrast with the term virtual reality which is often applied to technology that is "like" reality but can easily be recognized as a simulation.
Myron Krueger. Artificial Reality 2, Addison-Wesley Professional, 1991. ISBN 0-201-52260-8
Kalawsky, R. S. (1993). The science of virtual reality and virtual environments : a technical, scientific and engineering reference on virtual environments, Addison-Wesley, Wokingham, England ; Reading, Mass
Rheingold, H. (1992). Virtual reality, Simon & Schuster, New York, N.Y.