Artificial intelligence (AI) in healthcare is becoming increasingly important, given its potential to generate and analyse healthcare data to improve patient care and reduce costs and clinical risk while enhancing administrative processes within organisations. AI can introduce new sources of growth, change how people work and improve the effectiveness of their work. Consequently, implementing AI systems in healthcare can enable the optimisation of healthcare resources, facilitate a better patient experience, improve population health, reduce per capita costs, and improve the satisfaction of health professionals. Nowadays, most studies have focused on the potential benefits and barriers to implementing AI in healthcare, while only a few have explained the rational decision-making process for deploying new technologies in the healthcare system. In this study, we aim to fill this gap by investigating how AI supports the effective and efficient management of the healthcare system by examining the Humber River Hospital in Toronto using the case study methodology. To achieve the desired benefits from the process of implementing technology in healthcare, our key findings show that hospitals need to undergo a business transformation that exploits technology. Finally, we conclude that only effective knowledge of technology will enable hospitals to effectively become technological and digital.