Artificial intelligence is changing many aspects of healthcare, including the way new medicines are researched and developed. AI drug discovery combines advanced computing, machine learning, and large medical datasets to help researchers identify promising drug candidates more efficiently. While traditional drug development often requires significant time and resources, AI supports scientists by analyzing complex biological information and predicting potential outcomes. This technology also contributes to precision medicine, disease research, and clinical decision making. Understanding how AI drug discovery works provides valuable insight into the future of healthcare innovation while highlighting both its opportunities and ongoing research challenges.