AI has the potential to change healthcare operations or practices by enhancing patient outcomes, optimizing clinical processes, and introducing new therapeutic possibilities globally. This chapter comprehensively examines AI's significant impact on the healthcare ecosystem, highlighting its role in improving diagnostic accuracy through predictive modelling and image analysis, enabling early disease detection, and developing personalized treatment plans. It emphasizes AI's importance in streamlining healthcare delivery through intelligent automation and decision support technologies, reducing administrative burdens and improving care efficiency. This chapter explores the challenges and ethical dilemmas, including data privacy concerns, algorithmic bias, and AI's autonomous decision-making in clinical settings. It calls for robust governance frameworks and interdisciplinary collaboration among technologists, medical practitioners, and ethicists to ensure AI's responsible and equitable application in healthcare, prioritizing patient needs and upholding justice and equity principles.