Generative artificial intelligence (AI) is revolutionizing healthcare by accelerating drug discovery, enhancing drug safety, optimizing clinical trials, improving diagnostic accuracy, and personalizing patient care. The healthcare AI market is rapidly growing, with the U.S. market projected to reach $518.4 million in 2023 and the global market expected to reach $10.3 billion by 2025. AI-powered predictive analytics, telemedicine integration, and tailored treatment approaches are transforming healthcare delivery and addressing disparities in access to care. Challenges such as data privacy, bias in AI algorithms, and integrating AI with existing infrastructure must be addressed for the successful implementation of AI in healthcare. Strategic partnerships between healthcare providers and technology companies are crucial in harnessing the full potential of generative AI in healthcare.