This chapter examines the role of Artificial Intelligence (AI) in healthcare, examining its potential and the security and privacy challenges that accompany its integration. AI technologies, including machine learning, natural language processing, and computer vision, have significantly enhanced diagnostic accuracy, treatment personalization, and operational efficiency. However, the deployment of AI in healthcare also raises critical concerns around data security and patient privacy. As AI systems handle vast amounts of sensitive patient data, they are subject to rigorous regulatory standards such as the Health Insurance Portability and Accountability Act (HIPAA) and the General Data Protection Regulation (GDPR). The chapter discusses encryption, anonymization, and privacy-preserving techniques like federated learning and differential privacy, essential for maintaining data confidentiality. Additionally, it highlights ethical considerations, including algorithmic transparency and the need for explainable AI to promote trust among healthcare professionals and patients. The chapter concludes by exploring future directions in secure AI applications, such as blockchain and quantum cryptography, emphasizing the need for adaptive regulatory frameworks to support AI innovation while safeguarding patient rights. Through a balanced analysis, this chapter provides a comprehensive overview of the benefits and risks of AI in healthcare.