Artificial Intelligence (AI) is revolutionizing healthcare by enabling smarter diagnostic systems, accelerating personalized medicine, and raising critical ethical considerations. Advances in machine learning, natural language processing, and computer vision are transforming how diseases are detected, monitored, and treated. AI-powered diagnostic tools enhance accuracy, reduce errors, and facilitate early intervention, while personalized medicine leverages patient-specific data to optimize treatment outcomes. Despite these transformative opportunities, challenges persist in algorithmic bias, data privacy, and equitable access. This paper explores engineering innovations driving AI in healthcare, discusses the role of AI in diagnostics and personalized medicine, and highlights the ethical and regulatory frameworks necessary for responsible implementation. Ultimately, AI’s integration into healthcare presents both opportunities and responsibilities in reshaping global medical systems.