The term Eskimo is continued to be used to refer to all the indigenous people who live in these areas. However, in 1982, an act was passed which gave the word Inuit recognition, and made its usage possible. This act was passed, since the original natives and settlers in these areas tend to find the word Eskimo to be a little offensive, which is why they prefer to be called Inuit. The reason being, that the word Eskimo means eaters of raw flesh.
Some people tend to differentiate between the two, as they call all the original settlers in Alaska and Siberia as Eskimos, while they refer to the original settlers of Greenland and Canada as Inuit.
Both these words are often mixed up and confused for one another, but they don't really differentiate from one another in a very large manner, since they basically mean the same thing at the end of the day.
This is a term used to refer to natives living in the arctic and polar regions of the world. However, it is a term which some consider to be offensive, while people in Alaska prefer to be called Eskimos as opposed to anything else.