Artificial intelligence (AI) has become a critical and foundational component across various fields, significantly enhancing efficiency, decision-making, and driving innovation. By automating routine tasks, analyzing vast datasets for insights, personalizing consumer experiences, and optimizing operations, AI delivers substantial benefits such as cost savings, improved outcomes, and more effective responses to complex challenges. In a country like India, with its large population and high demand for healthcare services, AI holds immense potential to address the shortage of healthcare professionals and enhance the overall healthcare system. The adoption of AI in healthcare is essential to streamline administrative tasks, allowing healthcare professionals to focus more on providing direct patient care. While AI is already making strides in multiple sectors across India, the healthcare industry still requires broader and more impactful AI applications to improve access to care and clinical outcomes. AI can play a transformative role in enhancing diagnostic accuracy, optimizing the allocation of resources, and streamlining patient management, which are crucial to meeting the healthcare demands of India’s vast population. However, the implementation of AI in Indian healthcare faces several challenges, including infrastructural limitations, data privacy concerns, and the need for upskilling the workforce to effectively use AI technologies. This chapter focuses on the adoption of AI in the Indian healthcare sector, exploring both the opportunities it offers and the obstacles that must be addressed to ensure successful integration. This chapter examines how AI can assist in overcoming critical challenges and help the healthcare system operate more efficiently, ultimately improving patient outcomes and healthcare access across India.