ArtificialReality is when virtual reality is projected over real reality so they blend into one. When you walk down a very real street and are greeted by talking dolphins.
The usual method is some sort of projecting technology that interfaces with your neural circuitry. But the how isn't as important as the what and why and where to.
when your entire sense of reality can be faked, it leads one to distrust their own senses. It's possible that your entire environment is fictional, or selective elements. You can live in a waking dream, a very dream of reality. A reality of dream. It's hard to say. There is no more defining edge between virtual and real.
This kind of environment would likely create one of those cultural ParadigmShift""s where basic and fundamental concepts are called into question. Just like copyright is dissolving now and shortly our trust of recorded media will dissolve.