Artificial intelligence (AI) has immense power to set up an ideal health ecosystem through "intelligent medicine" i.e., a combination of human and machine intelligence. However, the application of AI in healthcare is still unclear. Currently, India is facing huge challenges such as the scarcity of medical resources and the uneven distribution of medical services. This also highlights the opportunities linked to challenges and risks. The most recent pandemic has accelerated this process by acknowledging that medicine stands on the brink of an AI revolution. Incorporating the evidence on the role of precision medicine, cost-effective healthcare, and expanding humanistic and medical services, this paper demonstrates the digital health interventions for the "enhancement" of capabilities, "efficiency," "extension of services" and upgrading "experience" in the health sector. Through thorough literature searches from PubMed, Google Scholar, and other reliable sources, this study aims to understand the evolving needs, and greater control and to bridge gaps in access to healthcare through AI. Also, India is currently developing the potential to automate multiple tasks and calling for more human interventions. The future of AI in healthcare looks promising with digital health interventions that eventually offer flexibility and convenience to both the patient and the provider. This paper will help public health professionals address ethical considerations and policy-making where AI plays a significant role in setting up an ideal health ecosystem.