The purpose of this paper is to discuss the history of artificial intelligence (AI) and its future implications in the healthcare industry. Utilizing information from research and medical journals, this paper will examine the foundations of AI and the people and events that influenced its development. Further, the various subsets of AI and its use in contemporary life will be discussed. While the technological evolution of AI will be discussed, this paper is not a technical treatise on the inner workings of AI software and technology, rather, it is a basic history of the development of AI and its respective subsets, and a look at current and potential future applications of AI. This information will be applied to the healthcare industry to discuss the history of AI in this field, detailing how AI was developed to find innovative solutions to complex medical problems. Finally, future prospects of AI in the medical industry will be discussed, explaining potential applications of this technology as well as various challenges and implications.