Over recent years, the rate of adoption of artificial intelligence (AI) in the healthcare sector has grown. However, little is known about the success and failure factors. Therefore, this chapter presents a narrative review around the concepts, critical factors, impacts, and challenges behind AI adoption in the healthcare sector. 50 papers were found in the Scopus and Web of Science databases during the period from 2018 to June 2023. The results revealed that the adoption of AI was affected by perceived benefit, perceived ease of use, social influence, attitudes, training, top management support, and more. It was also shown that the challenges of adopting AI are its high cost, unprepared infrastructure, low level of expertise, resistance to change, security concerns, and trust. Consequently, this research advances our theoretical understanding of AI adoption in healthcare organizations in different economic and cultural contexts; and it can provide insights to various stakeholders for effective AI adoption.