This paper states:
Suppose a two qubit system is in the state $|\psi\rangle=a|00\rangle+b|11\rangle$, and consider the expectation value of any observable $A \otimes I$ that is nontrivial only on the first factor: $\langle\psi|A \otimes I| \psi\rangle=|a|^{2}\langle 00|A \otimes I| 00\rangle+|b|^{2}\langle 11|A \otimes I| 11\rangle+a^{*} b\langle 00|A \otimes I| 11\rangle+b^{*} a\langle 11|A \otimes I| 00\rangle$ $$ =|a|^{2}\langle 0|A| 0\rangle+|b|^{2}\langle 1|A| 1\rangle $$
What is the significance $I$ in "$|A \otimes I|$"? I understand it is related to "on the first factor" but not quite sure how.