This paper examines how AI-powered diagnostics have transformed medical research and patient care, focusing on diagnostic accuracy, clinical procedures, and individualized therapy. The main goal is to evaluate how AI technologies are incorporated into healthcare, uncover ethical and regulatory concerns, and provide policy solutions. The secondary data evaluation examines AI's diagnostic advantages and drawbacks using contemporary research and case examples. Significant results show that AI enhances diagnostic accuracy and workflow efficiency but also shows algorithmic bias, lack of transparency, standardization, and regulatory problems. These constraints highlight the need for inclusive datasets, transparent AI models, and rigorous validation. The study's policy implications underline the need for comprehensive governance structures to promote fair, safe, and successful AI implementation in healthcare. Policymakers should optimize AI-powered diagnostics' potential to enhance patient outcomes and advance precision medicine by tackling these obstacles.
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