Artificial Intelligence (AI) is transforming the healthcare sector by enhancing diagnostic accuracy, improving patient care, optimizing administrative workflows, and enabling personalized medicine. With the rapid growth of medical data and advancements in machine learning, deep learning, and natural language processing, AI-driven systems are becoming integral to modern healthcare.  This paper explores the role of AI in revolutionizing healthcare, highlighting key applications such as medical imaging, predictive analytics, drug discovery, virtual health assistants, and remote patient monitoring. It also discusses the challenges, ethical concerns, and future prospects of AI adoption in healthcare. The study concludes that while AI has immense potential to improve healthcare outcomes and efficiency, careful implementation, ethical governance, and collaboration between technology and healthcare professionals are essential for its sustainable growth.