To "observe" can mean any sort of interaction between the particle and a larger, connected physical system. To observe something, you have to have a physical interaction with it (it is hit by a photon of light which then hits your eyes, to use the most basic example) and so its quantum state decoheres into a particular state.
Most scientists are fine with the idea that it doesn't matter if the larger physical system has any sort of "consciousness" or "observation"; isolated particles have quantum behaviors, interacting particles decohere towards more normal-seeming physics. However, there are theories that shouldn't be immediately discounted that do still ascribe a role to the particular observer, indicating everything from reality being relative to consciousness being a fundamental aspect of the universe. I wouldn't take these too seriously, but I wouldn't dismiss them out of hand either.
Of course, that's not addressing the worst thing about quantum mechanics: once you've finally rid yourself of the pseudoscience and poor metaphors that make it sound like magic, it seems for just a second like a normal, intuitive process that's just been obscured through poor explanation--then you learn a little more and realize it's far more bizarre than you'd imagined.
Most scientists are fine with the idea that it doesn't matter if the larger physical system has any sort of "consciousness" or "observation"; isolated particles have quantum behaviors, interacting particles decohere towards more normal-seeming physics. However, there are theories that shouldn't be immediately discounted that do still ascribe a role to the particular observer, indicating everything from reality being relative to consciousness being a fundamental aspect of the universe. I wouldn't take these too seriously, but I wouldn't dismiss them out of hand either.
Of course, that's not addressing the worst thing about quantum mechanics: once you've finally rid yourself of the pseudoscience and poor metaphors that make it sound like magic, it seems for just a second like a normal, intuitive process that's just been obscured through poor explanation--then you learn a little more and realize it's far more bizarre than you'd imagined.