## TL;DR
AI is transforming healthcare through medical imaging diagnostics, accelerated drug discovery (AlphaFold 3), robotic surgery assistance, and personalized treatment planning. FDA-approved AI medical devices now exceed 500.

## Core Explanation
Medical imaging: CNNs and Vision Transformers detect tumors, fractures, and retinal disease from X-rays, CT, MRI. Drug discovery: AI screens billions of molecular candidates for binding affinity, toxicity, and synthesizability. Clinical NLP: extracting structured data from unstructured physician notes.

## Detailed Analysis
The FDA cleared 521 AI/ML-enabled medical devices by 2023, predominantly in radiology (76%). Challenges: dataset shift (performance degrades at new hospitals), explainability (clinicians need to understand AI recommendations), and prospective validation (most studies are retrospective).

## Further Reading
- FDA: AI/ML-Enabled Medical Devices
- The Lancet Digital Health
- Nature Medicine: AI Collection