the main difference between the A*(A star) and AO*(AO star) algorithms is that A* algo is a OR graph algorithm and AO* is a AND-OR graph algorithm.
In OR graph algorithm it just find only one solution (i.e either OR solution means this OR this OR this).
But in the AND-OR graph algo it find more than one solution by ANDing two or more branches.
for more details on AND-OR graph & OR graph please refer the book "Artificial Intelligence" by Elaine Rich & Kevin Knight.
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