Telemedicine is becoming a groundbreaking solution for underserved communities and remote areas, and the inclusion of Artificial Intelligence (AI) is giving telemedicine a new dimension. This article examines how AI is being used in telemedicine, potentially bridging healthcare gaps globally. AI-driven diagnostics have improved remote patient assessment by training on vast datasets, including medical images, lab results, and medical records. These algorithms specialize in detecting disease-specific patterns in cardiology, oncology, pathology, and radiology. Studies suggest that AI-driven diagnostics empower healthcare providers by remotely assessing a patient’s health with precision, enhancing early disease detection and clinical decision-making. Smart wearable devices, and remote patient monitoring systems, also powered by AI, offer real-time insights into patient data, enabling early detection of potential health complications. Smart RPM devices like glucometers, thermometers, and ECG + stethoscopes have been implemented to reduce hospital readmissions. AI-assisted automated charting software and virtual health assistants are showing great potential in streamlining administrative workflow efficiently. However, adopting AI in telemedicine presents a few ethical considerations, including data privacy, algorithmic biases, and potential misuse. Public and non-profit institutions need to formulate regulatory guidelines safeguarding telemedicine against ethical challenges, ensuring the responsible adoption of AI technology in telemedicine.