The significance of the 'Turing Test' in artificial intelligence lies in its role as a criterion for assessing a machine's ability to exhibit intelligent behavior indistinguishable from that of a human. Proposed by Alan Turing, the test involves evaluating a machine's responses to questions posed by a human evaluator; if the evaluator cannot reliably distinguish between machine and human responses, the machine is considered to have passed the test. This benchmark spurs discussions on the nature of intelligence, consciousness, and the ethical implications of AI advancement.