Artificial Intelligence (AI) is transforming healthcare by enhancing diagnostics, personalizing treatment, and improving patient outcomes. However, its integration raises significant ethical concerns, including patient privacy, algorithmic bias, and transparency. This review explores the ethical dilemmas and practical applications of AI in healthcare, emphasizing the need for responsible development and deployment. AI's ability to process vast amounts of data enables more accurate diagnostics and predictive modeling, leading to earlier interventions and better health outcomes. It also facilitates personalized treatment plans by analyzing genetic and clinical data, improving treatment efficacy and reducing adverse effects. AI streamlines administrative workflows, optimizes resource allocation, and accelerates drug discovery, contributing to more efficient healthcare systems. Ethical challenges include ensuring data privacy, mitigating biases in AI algorithms, and maintaining transparency in decision-making. AI systems must be designed to protect patient confidentiality and avoid reinforcing existing health disparities. Ethical AI development requires collaboration between healthcare professionals, technologists, and policymakers to ensure fairness, accountability, and patient-centered care. The review highlights case studies demonstrating AI's impact in healthcare, such as early detection of diabetic retinopathy, predictive analytics for patient deterioration, and robotic-assisted surgery. These examples illustrate AI's potential to revolutionize diagnostics, treatment, and patient care. Recommendations include establishing ethical frameworks, promoting inclusive design, investing in AI transparency, and fostering interdisciplinary collaboration. These measures are essential to ensure AI is used responsibly, aligning with ethical principles and improving healthcare quality. In conclusion, AI holds immense potential to transform healthcare, but its ethical integration is crucial. By addressing ethical challenges and promoting responsible AI development, stakeholders can ensure that AI enhances healthcare delivery, upholds ethical standards, and ultimately improves patient care.Artificial Intelligence (AI) is transforming healthcare by enhancing diagnostics, personalizing treatment, and improving patient outcomes. However, its integration raises significant ethical concerns, including patient privacy, algorithmic bias, and transparency. This review explores the ethical dilemmas and practical applications of AI in healthcare, emphasizing the need for responsible development and deployment. AI's ability to process vast amounts of data enables more accurate diagnostics and predictive modeling, leading to earlier interventions and better health outcomes. It also facilitates personalized treatment plans by analyzing genetic and clinical data, improving treatment efficacy and reducing adverse effects. AI streamlines administrative workflows, optimizes resource allocation, and accelerates drug discovery, contributing to more efficient healthcare systems. Ethical challenges include ensuring data privacy, mitigating biases in AI algorithms, and maintaining transparency in decision-making. AI systems must be designed to protect patient confidentiality and avoid reinforcing existing health disparities. Ethical AI development requires collaboration between healthcare professionals, technologists, and policymakers to ensure fairness, accountability, and patient-centered care. The review highlights case studies demonstrating AI's impact in healthcare, such as early detection of diabetic retinopathy, predictive analytics for patient deterioration, and robotic-assisted surgery. These examples illustrate AI's potential to revolutionize diagnostics, treatment, and patient care. Recommendations include establishing ethical frameworks, promoting inclusive design, investing in AI transparency, and fostering interdisciplinary collaboration. These measures are essential to ensure AI is used responsibly, aligning with ethical principles and improving healthcare quality. In conclusion, AI holds immense potential to transform healthcare, but its ethical integration is crucial. By addressing ethical challenges and promoting responsible AI development, stakeholders can ensure that AI enhances healthcare delivery, upholds ethical standards, and ultimately improves patient care.