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Artificial Intelligence (AI) is increasingly utilized in healthcare and medicine, providing innovative solutions to challenges such as rising medical costs, the growing burden of chronic diseases, and disparities in access to care. This book chapter offers a comprehensive overview of the current applications, challenges, and opportunities related to AI in healthcare and medicine. It begins by introducing core AI technologies, including machine learning, natural language processing, and recent advances in generative AI, to establish a theoretical foundation for understanding their potential in these fields. In healthcare, the chapter explains how AI supports personalized chronic disease management through remote monitoring, enables home-based rehabilitation with real-time feedback and gamification, improves fall detection and prevention for older adults, and enhances access to mental health support through intelligent chatbots and data-driven diagnostics. In medicine, it highlights AI's role in improving diagnostic accuracy and clinical decision-making, enhancing medical image analysis, assisting in surgical planning and execution, strengthening predictive analytics for proactive interventions, and optimizing clinical workflows to reduce administrative burdens. However, integrating AI into healthcare and medicine presents significant challenges that require attention. This chapter addresses key issues, including data privacy and security, the lack of transparency and interpretability in AI's “black box” systems, the need for effective human-AI interaction, and the development of robust regulatory frameworks and guidelines to ensure clinical safety and efficacy. Looking forward, the chapter identifies future trends, particularly the potential for improving the scalability and generalizability of AI models and their integration with emerging technologies such as augmented reality, robotics, and the Internet of Things. In conclusion, this chapter examines how AI, despite its challenges, drives significant advancements in healthcare and medicine.