What is the sense "I Am"?
You may have had the experience when you wake up in the morning, before your eyes open and you do not know where you are and there is only infinite dark space but it appears illuminated, and the light shines from “you”. There is no thought and no emotion or sensation, you do not have a name and you are no one.
The moment there is an awareness of “being” or “existing”, that that is the “I Am”. The only knowledge that is present is the knowledge that you are. And it is not known conceptually it is known directly in consciousness, as Pure Consciousness manifested.
The I am is the seed of the world. It is the Creative principle manifested. This is the Christ consciousness some people talk about. The Son of God, that is: the Creation out of the Creator. The Manifestation out of the Unmanifested. Genesis.
Metaphysically speaking, in Creation space appears first and then the element Fire: light. Let there be light!
After that thoughts arise and images appear in the mind. Even before the eyes open. Imagination arises. That is the element Air. It arises after Fire.
So, the world appears layer by layer.
After thoughts emotions appear. The element Water. Memories and emotional connections begin to stir.
After Emotions, sensations and the body are felt and awareness of the physical world arises. That is the element Earth.
That is the cosmology. The model I just described can be seen depicted in many diagrams in various esoteric traditions, both Eastern as well as Western.
As for psychology, if the belief in being a separate entity is present psychological suffering also arises, due to the repeated patterns of thinking, feeling and sensations over the years.
This creates the impression that something is not quite right, or something is off about life. A subtle inquietude, and often not subtle at all.
Most people then enter a state where there is no more questioning, there is only repetition of misperceptions and wrong ideas about reality. So, psychological suffering is inevitable and persisting.
With adequate inquiry we begin to look back inward, carefully, quietly, with no rush. The Truth is here, it is not hidden. Only a certain aspect of the mind is apparently obscuring it. Once we observe well what is happening the attachment from the erroneous views and the falseness of our views falls away naturally. Like learning that Santa Claus does not exist, really.
The main wrong belief is in the veracity of a separate entity called “I”. “I Am” is an actual creation but it is not a separate entity. It is Pure Consciousness manifesting spontaneously and subsequently taking the form of this personality and body. All this is the manifestation of Pure Impersonal Consciousness; and it does not need to be saved, fixed or evolve or go to heaven or paradise.