The integration of Artificial Intelligence (AI) into healthcare is poised to revolutionize patient care by enabling more accurate diagnoses, personalized treatment, predictive analytics, and operational efficiency. As the global healthcare system grapples with aging populations, rising costs, and medical staff shortages, AI presents itself as a transformative solution. This article explores the evolution and future trajectory of AI-powered healthcare, examining key technologies such as machine learning, natural language processing, and computer vision. It highlights their applications in diagnostic imaging, virtual health assistants, robotic surgeries, and chronic disease management. The paper also examines the ethical, legal, and social implications of AI adoption in clinical settings and offers policy recommendations for ensuring the trustworthy and equitable implementation of AI. Drawing from real-world use cases, industry reports, and peer-reviewed research, the article concludes that the future of AI-powered healthcare lies not in replacing human providers but in augmenting their capabilities to deliver more proactive, efficient, and patient-centric care.