Artificial intelligence is revolutionizing — and strengthening — modern healthcare through technologies that can predict, grasp, learn, and act, whether it's employed to identify new relationships between genetic codes or to control surgery-assisting robots. It can detect minor patterns that humans would completely overlook. This study explores and discusses the various modern applications of AI in the health sector. Particularly, the study focuses on three most emerging areas of AI-powered healthcare: AI-led drug discovery, clinical trials, and patient care. The findings suggest that pharmaceutical firms have benefited from AI in healthcare by speeding up their drug discovery process and automating target identification. Artificial Intelligence (AI) can help also to eliminate time-consuming data monitoring methods. The findings also indicate that AI-assisted clinical trials are capable of handling massive volumes of data and producing highly accurate results. Medical AI companies develop systems that assist patients at every level. Patients' medical data is also analyzed by clinical intelligence, which provides insights to assist them improve their quality of life.