In the current era, artificial intelligence (AI) development is experiencing unprecedented growth, fueled by advancements in deep learning, big data, and computing power. Industries are integrating AI for automation, optimization, and decision-making. Breakthroughs in natural language processing and computer vision are reshaping how humans interact with technology. Ethical considerations regarding AI bias, privacy, and job displacement remain paramount. Collaborations between academia, industry, and governments drive innovation, aiming to harness AI's potential while addressing its societal implications. There is no denying that AI has revolutionized various sectors, including healthcare. This paper explores the applications of AI in the healthcare industry, highlighting its impact on diagnosis, treatment, patient care, and the challenges AI is facing in the healthcare industry. The effectiveness and challenges of AI implementation in healthcare are discussed through the analysis of various studies and real-world examples. Eventually, conclusions can be drawn that under appropriate regulation and promotion, AI has immense potential and will shine brightly in the healthcare industry, significantly improving the quality of medical care for individuals.