Here is a breakdown:
* J' is the contracted form of "je" (I)
* ai is the first person singular conjugation of the verb "avoir" (to have)
So, J'ai is literally "I have" but can also be translated as "I am" in certain contexts.
For example:
* J'ai faim (I am hungry)
* J'ai froid (I am cold)
* J'ai un livre (I have a book)