The intelligent machines are capable of carrying out activities like comprehending natural language, identifying patterns, solving issues, and coming to conclusions that normally call for human cognition. Artificial intelligence consists of several subfields, including computer vision, robotics, natural language processing, machine learning, and neural networks. The healthcare industry, essential for societal health, includes diverse services, institutions, and businesses aimed at preserving and enhancing well-being. Its primary objectives are prevention, treatment, and maintenance of health through various means. AI is transforming different industries, including healthcare. The incorporation of AI in healthcare is changing how diagnoses are made, treatment plans are developed, and patient care is provided through the use of advanced algorithms and data analysis methods. The technology is enhancing diagnostic accuracy, treatment efficiency, and overall healthcare accessibility, contributing to a more robust healthcare system in India. The USA leads in incorporating AI in healthcare, with significant investments and advancements in the sector. As per the Indian statistics, the medical practitioners and facilities are insufficient compared with developed countries to diagnose the disease and methods for the curing. The main objective is to analyze the market size of AI in healthcare sector in India and global. The research has adopted descriptive method and used secondary data analysis; the study is more focused on the impact of artificial intelligence in healthcare sector. The overall study reveals India has prospective digital technology markets in different sectors like agriculture, manufacturing, and services, etc. In this respect, AI plays a vital role in Indian healthcare sector to accurately diagnose the diseases and supports for the speedy recovery in order to improve overall health of the nation.