Artificial Intelligence (AI) holds great promise for healthcare, promising improved patient outcomes and streamlining processes. Nevertheless, this transformational journey comes with numerous potential pitfalls that warrant attention. This comprehensive review explores some key challenges involved with integrating AI into medicine. First and foremost is the risk of over-reliance on AI systems. Users often rely on recommendations provided by AI to follow without question, potentially causing automation bias. Human oversight is essential to avoid mistakes and patient harm; failure to provide such oversight could have serious repercussions that necessitate having someone in control at all times - emphasizing the necessity for having a human-in-the-loop approach. Ethical considerations must always come first when developing AI systems, with privacy, informed consent, and data protection as non-negotiable obligations for patients and organizations. Transparency and accountability within AI systems are necessary to quickly identify biases or errors to enable AI development with integrity that mitigates bias, ensures fairness, and maintains transparency. Ethical AI development involves ongoing efforts made with great diligence by developers to mitigate any bias, ensure fairness, and maintain transparency. These principles form the bedrock upon which ethical development depends. Collaboration between healthcare providers and AI developers is of utmost importance for patient safety and well-being; healthcare providers must protect patient data while developers must ensure AI systems adhere to legal and ethical requirements. AI and healthcare present significant challenges. Ethical frameworks, bias mitigation techniques, and transparency measures must all be pursued to advance AI's role within healthcare delivery systems. We can unleash AI's full potential by overcoming such hurdles while upholding patient safety, ethics, and quality care as the cornerstones of healthcare innovation.