The understanding of neurophysiological mechanisms responsible for motor imagery (MI) is essential for the development of brain-computer interfaces (BCI) and bioprosthetics. Our magnetoencephalographic (MEG) experiments with voluntary participants confirm the existence of two types of motor imagery, kinesthetic imagery (KI) and visual imagery (VI), distinguished by activation and inhibition of different brain areas in motor-related α- and β-frequency regions. Although the brain activity corresponding to MI is usually observed in specially trained subjects or athletes, we show that it is also possible to identify particular features of MI in untrained subjects. Similar to real movement, KI implies muscular sensation when performing an imaginary moving action that leads to event-related desynchronization (ERD) of motor-associated brain rhythms. By contrast, VI refers to visualization of the corresponding action that results in event-related synchronization (ERS) of α- and β-wave activity. A notable difference between KI and VI groups occurs in the frontal brain area. In particular, the analysis of evoked responses shows that in all KI subjects the activity in the frontal cortex is suppressed during MI, while in the VI subjects the frontal cortex is always active. The accuracy in classification of left-arm and right-arm MI using artificial intelligence is similar for KI and VI. Since untrained subjects usually demonstrate the VI imagery mode, the possibility to increase the accuracy for VI is in demand for BCIs. The application of artificial neural networks allows us to classify MI in raising right and left arms with average accuracy of 70% for both KI and VI using appropriate filtration of input signals. The same average accuracy is achieved by optimizing MEG channels and reducing their number to only 13.