The potential value of AI to healthcare, and nursing in particular, ranges from improving quality and efficiency of care to delivering on the promise of personalized and precision medicine. AI systems may become virtually indispensable as ever more data is amassed about every aspect of health. AI can help reduce variability in care, while improving precision, accelerating discovery and reducing disparities. AI can empower patients and potentially allow healthcare professionals to relate to their patients as healers supported by the combined wisdom of the best medical research and analytic technology. There are, however, many challenges to understanding the optimal uses of AI; addressing the technological, systemic, regulatory and attitudinal roadblocks to successful implementation; and integrating AI into the fabric of health care. This paper provides a grounding in the origins and fundamental building blocks of AI, applications in healthcare and for nursing, and the critical challenges facing implementation in healthcare.