The artifact is what you want stored in Bamboo as the results of the run. Bamboo using different working directories for each piece of the workflow so they are also used to transistion files from one are to the next. It can be used inside of Bamboo or taken out as your workflow desires.
A quick example would be checking out the source code, building it, and storing just the binaries(build results) as the artifact. Artifacts retain with each build and deployment unless they are deleted(there are some retention options you can set inside of Bamboo), they can stack up quite quick as well and fill up a disk fast if you're not careful.
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