The first use of the term in public was by Jesse James Garrett in February 2005. Garrett thought of the term when he realized the need for a shorthand term to represent the suite of technologies he was proposing to a client.
Although the term Ajax was coined in 2005, most of the technologies that enable Ajax started a decade earlier with Microsoft's initiatives in developing Remote Scripting. Techniques for the asynchronous loading of content on an existing Web page without requiring a full reload date back as far as the IFRAME element type (introduced in Internet Explorer 3 in 1996) and the LAYER element type (introduced in Netscape 4 in 1997, abandoned during early development of Mozilla). Both element types had a src attribute that could take any external URL, and by loading a page containing JavaScript that manipulated the parent page, Ajax-like effects could be attained. This set of client-side technologies was usually grouped together under the generic term of DHTML. Macromedia's Flash could also, from version 4, load XML and CSV files from a remote server without requiring a browser being refreshed.
Microsoft's Remote Scripting (MSRS), introduced in 1998, acted as a more elegant replacement for these techniques, with data being pulled in by a Java applet with which the client side could communicate using JavaScript. This technique worked on both Internet Explorer version 4 and Netscape Navigator version 4 onwards. Microsoft then created the XMLHttpRequest object in Internet Explorer version 5 and first took advantage of these techniques using XMLHttpRequest in Outlook Web Access supplied with the Microsoft Exchange Server 2000 release.
Source: Wikipedia.org