AI in healthcare has improved, making diagnostics more accurate and increasing the effectiveness of treatments. The present study discusses the AI trends in diagnostic and therapeutic applications and focuses on the presented practical applications and their effects on patient care. The purpose of this particular review is to focus on the current developments in the implementation of AI in the field of health care, present main use cases and successes, as well as discuss about the issues and concerns in the topic at hand. Previous studies on AI in healthcare with specific consideration of diagnostic image analysis and interpretation, histology and molecular pathology, whole-genome sequencing, and therapeutic decision support are discussed. The selection criteria included papers with data gathered from real-life AI cases and quantitative findings. Study materials were obtained from e-journals, conference papers, and established online sources with descriptive analysis being done on the data collected. A summary of the findings revealed a number of highly impactful subcategories focused on the use of artificial intelligence diagnostic imaging, especially in radiology, pathology, and genomics. The AI applications used in the fields of operations and drug discovery revealed the ability to accurately predict clinical trial outcomes and to create effective treatments. First of all, AI can become a game changer in healthcare by enhancing diagnostics accuracy and treatment outcomes. The future research questions include further developing the methods that explain the AI models’ decisions, protecting the privacy of patient information, and reducing algorithmic bias for better fair healthcare for all. Therefore, better interactions between creators of AI and clinicians and regulatory authorities are pertinent to make sure that the full advantages of AI are realized in clinical practice to advance patient care.