The integration of artificial intelligence (AI) in healthcare presents significant promise to enhance clinical procedures and patient outcomes. This research examines the setting, methodology, conclusions, and issues associated with AI in healthcare. The swift proliferation of digital health data, encompassing medical imaging and clinical records, has generated substantial prospects for AI applications. Artificial intelligence methodologies, including machine learning, natural language processing, and computer vision, facilitate the derivation of significant insights from intricate datasets, hence improving clinical decision-making. A thorough literature review examines the practical applications of AI, encompassing its roles in medical diagnostics, treatment planning, and patient outcome prediction. The report also examines ethical issues, data protection, and legal frameworks, which are crucial for the responsible application of AI in healthcare. The results illustrate AI's capacity to enhance diagnostic precision, facilitate administrative efficiency, and optimise resource distribution, resulting in tailored therapies and improved healthcare administration. Nonetheless, obstacles persist, such as data integrity, algorithm transparency, and ethical considerations, which must be resolved to guarantee the secure and efficient deployment of AI. Continuous research, cooperation between healthcare and AI experts, and the establishment of comprehensive regulatory frameworks are essential for optimising the advantages of AI while minimising hazards. This research highlights AI's capacity to transform healthcare, stressing the necessity for a multidisciplinary strategy to effectively harness its benefits and tackle the associated ethical and regulatory dilemmas.