An air conditioner does not actually make cool air. Instead it lowers the temperature inside your house and sends that heat out into your yard. Chemicals known as hydrochlorofluorocarbons, which have a low boiling point, pass through metal tubes into an air compressor outside your house which squeezes this chemical, causing it to compress and become hot. This hot, pressurized gas flows across a condenser which allows the gas to liquify, causing it to release even more heat. Metal fins dissipate this heat into the air outside.
The chemicals then flow back into the house and through an evaporator which cools the air. A fan on the part of the air conditioner inside your house blows air across these cool tubes and into your home. Humidity tends to condense onto these cool pipes and this water is drained to the outside. In this way, your home becomes both cooler and less humid because heat energy and water are sent outside.