Air Conditioning works by transferring energy (heat) from one place to another. Simply speaking, if we are trying to heat a room inside a house, we will absorb heat energy that is in the outside air and then release this energy inside.
The magic happens by the use of a refrigerant which assists this process. Similarly, when we are trying to cool a room, we are taking the heat energy inside a room and transferring to the air outside of the house.
Having fans blowing over radiator fins (coils) allows us to control how much air we want to heat or cool. We can then transfer this through ductwork and outlets for a ducted system or straight out of the indoor unit on a split system.