Kotlin uses type inference to reduce the amount of type-related code you need to write while maintaining type safety.The compiler determines types based on usage, assignments, and expected contexts, locking in the type once inferred.Type inference is commonly seen with local variables, where the compiler infers the type from the assigned value.Return types of functions can be inferred when using single-expression bodies, simplifying code and maintaining clarity.In cases where the compiler needs more context, explicit type declaration is required to help with type inference.Kotlin's type inference extends to generics, function overloading, lambdas, and smart casts, enhancing code flexibility.Generics in Kotlin allow flexible type usage by inferring types from function or constructor call arguments.The compiler uses overload resolution and inference to determine which function to call based on arguments and signatures.Kotlin also supports SAM conversions, allowing passing lambdas in place of Java functional interfaces with inferred types.Type inference in Kotlin occurs during compilation, ensuring code cleanliness and safety through strict processes.