Leaking water inside is a sign that there may be something wrong with your air conditioner, and you should deal with it promptly. Water dripping inside can cause mold and other issues, and AC manufacturers take steps to avoid that kind of damage. On the other hand, water leaking outside may be part of the normal function of your air conditioner. Air conditioners produce condensation as a part of their normal functioning. A little water dripping outside is perfectly normal. However, if you notice a large quantity of excess water or a sudden change in the amount of water produced by your air conditioner, even though the temperature hasn't changed, you may want to have a technician come out and take a look.