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The integration of Artificial Intelligence (AI) in the healthcare sector has ushered in a new era of transformative possibilities. This comprehensive review paper explores the multifaceted applications of AI technologies within healthcare settings, delving into their impact on diagnosis, treatment, patient care, and healthcare management. The synthesis of recent research, methodologies, and case studies provides insights into the diverse range of AI-driven innovations, including machine learning algorithms, natural language processing, computer vision, and predictive analytics. Furthermore, this paper examines the ethical considerations, challenges, and future prospects associated with the adoption and advancement of AI in healthcare. By critically analyzing the current state of AI applications in the healthcare domain, this review aims to contribute to a deeper understanding of the potentials, limitations, and ethical implications of AI-driven transformations in healthcare delivery.