This is the theme to the movie Caddyshack, and plays at the beginning and end of the film. The song is associated with the gopher who fends off the attacks of overeager and slightly deranged groundskeeper Carl Spackler (Bill Murray), who blows up most of the golf course in an attempt to kill the creature. After the blast, the gopher emerges, safe and sound, and dances to this song.
Loggins saw a rough cut of the movie before he wrote the song. He used the character Danny Noonan, who was a caddy with hopes for a brighter future, as inspiration.
Loggins told the St. Petersburg Times: "The character was trying to figure out where he fit. But at the same time he wanted people to leave him alone and let him find his own way. So I wanted to grab him and summarize that character, and that's what 'I'm Alright' is doing."
According to Loggins, the rough cut was to a Bob Dylan song. (Perhaps "It's Alright, Ma (I'm Only Bleeding)"?)
Eddie Money was recording in a nearby studio, and Loggins convinced him to sing a line on this song. That's him in the background singing, "You make me feel good!" Money was unhappy that he never got credit for his contribution. "I'm not a fan of Kenny Loggins to tell you the truth," he told Cincinnati morning show host Kidd Chris of WEBN in 2014. "I sang the bridge in that. We were label mates, you know."
Loggins also provided the theme to the 1988 movie Caddyshack II with his song "Nobody's Fool." Loggins couldn't help this movie, as it was reviled by Caddyshack fans who felt it desecrated the original.
This was used in a 2004 commercial for American Express where Tiger Woods plays Bill Murray's character from Caddyshack
and battles the gopher, re-creating many of the scenes shot-for-shot. This time though, he catches the gopher with the help of a pest control expert who lures him out of his hole by playing "I'm Alright."