AES was an initiative by the government to find a suitable replacement for 3DES. It was a competition between numerous candidate algorithms against a set of defined guidelines defined by the NIST (
www.NIST.gov). Some of the criteria the government was looking for were:
Good security - the algorithm should be resistant to every form of known attack
Fast - it should be able to be implemented in hardware or software across a variety of platforms
Adaptable - it should be able to be implemented in a range of environments, ie ATM, Satellite, Cable, wireless, etc. It should also support different block and key sizes.
There were numerous other criteria, but those were some of the major ones.
The Rijndael algorithm eventually beat out all the other candidates and became the basis for AES. The primary difference between the submitted Rijndael and the final product of AES is that Rijndael supported 128, 192, and 256 bit block sizes, the NIST limited this to only 128 for AES. It can still use 128, 192, or 256 bit keys.
AES was needed because
1) 3DES had a known weakness in the mathematical algorithm.
2) 3DES was not the most efficient algorithm in the world to implement.
3) The government wanted a new toy to play with.
In my own testing I've found that using 256-bit AES usually takes the same CPU/memory toll on the system as 168-bit 3DES, perhaps just a little bit less. It is a very efficient algorithm.
It is intended as a replacement to 3DES. IPSec can use AES or 3DES. The way 3DES works over wireless is very similar to how AES works.
AES has it's own mechanism for dynamic subkey generation so you dont have to worry about the key retrieval attack as you do with WEP or TKIP (if they can get your key before you rekey). It's also resistant to statistical analysis of the ciphertext (finding which letter appears most often in the ciphertext, and assuming that letter is the one which is known to be the most commonly used in the English language, etc), which is a weakness of the RC4 algorithm used in WEP, WPA, WPA+TKIP.
Does that answer your question?