Sophisticated means either having a good understanding or being intelligent of how people around you behave, or made in a complicated way.
Firstly, when we talk about people, we mention a person to be sophisticated when that person appears to be intelligent and well aware of his or her surroundings.
Secondly, when we talk about objects or other non-human things, we mention them to be sophisticated when it appears to be well organized but arranged in a complicated manner.