Medical supply chain networks are important for providing the proper consumer with medicine and other related products. But frequent problems such as inadequate distribution channels and stock management lead to the following: always consumers experiencing stock out higher costs expended on the same stock since most will go to waste due to expiry. This paper explores how Artificial Intelligence (AI) has been used in healthcare supply chains especially drug distribution and inventory management. These include areas like Artificial intelligence in demand forecasting, Artificial intelligence in predictive analytics, and Artificial intelligence in inventory tracking, among others. A literature review captures AI development in the context of healthcare logistics, while a coherent approach assesses deployable interventions. The results have highlighted direct gains of AI implementation including increased productivity, reduced cost, and quality improvement of patient service. Future direction and prospects are also considered, as well as longer limitations and concerns such as the need for intelligent, scalable and ethically sound models.