Phase I reactions are the initial steps in the biotransformation process where drugs and other xenobiotics undergo chemical modifications to enhance their solubility and facilitate elimination from the body. These reactions primarily involve functionalization processes, such as oxidation, reduction, and hydrolysis, which often convert lipophilic substances into more polar metabolites. This is a crucial part of drug metabolism as it prepares compounds for subsequent Phase II reactions that usually further modify these metabolites for excretion.