Artificial Intelligence (AI) has emerged as one of the most transformative technologies in modern healthcare. The integration of AI into medical practice has revolutionized disease diagnosis, treatment planning, patient monitoring, and healthcare management. AI-powered systems can analyze vast amounts of medical data with remarkable speed and accuracy, assisting healthcare professionals in making informed decisions. This paper examines the role of AI in healthcare, its applications, benefits, challenges, and future prospects. The study highlights how AI contributes to improved patient outcomes, reduced healthcare costs, and enhanced efficiency in medical services. Despite its advantages, concerns related to data privacy, ethical issues, and implementation barriers remain significant challenges. The paper concludes that responsible adoption of AI technologies can substantially improve healthcare delivery worldwide.