Artificial Intelligence (AI) is revolutionizing healthcare by enhancing diagnostic accuracy, personalizing treatment, and improving operational efficiencies. This paper reviews the current applications of AI in healthcare, including machine learning in medical imaging, predictive analytics, and robotic-assisted surgeries. The study also addresses challenges such as data privacy, ethical considerations, and integration with existing healthcare systems. Future directions emphasize the need for robust AI models, regulatory frameworks, and multidisciplinary collaboration to fully realize AI�s potential in healthcare.