In recent years, artificial intelligence (AI) has boomed in the healthcare sector, particularly in the areas of drug development and patient risk assessment for illness diagnosis. AI methods are used to precisely identify complicated diseases by interpreting data from genomes, ultrasound, computed tomography scans, mammography, magnetic resonance imaging, and other sources in combination with lifestyle and environmental factors. In medical imaging, AI may be used to evaluate complex data points in a medical report, differentiating between segments about illness and health and rejecting noise from pertinent signals. AI also improved the clinic experience and early prediction and has accelerated the process of getting patients ready to resume their rehabilitation. Drug development, data and language processing, trend analysis, data integration, and resource optimization are some of the areas in which AI is profoundly involved. With its focus on creating original content, generative AI has opened up a world of possibilities for the medical imaging industry. It gives healthcare professionals more advanced diagnostic resources, customized treatment plans, and better patient outcomes. In this chapter, AI methods for diagnosing a wide range of illnesses, processing medical data, and other applications in healthcare industries with their challenges are reported that can serve as a prior art for the future development in this field. © 2025 Elsevier B.V., All rights reserved.