This report discusses the capabilities and challenges of artificial intelligence (AI) in healthcare delivery. It identifies three capabilities of AI, including personalization and profiling, predictions, and pattern recognition. The report also analyzes the benefits and challenges of AI in healthcare delivery, including real-time data, streamlined tasks, inaccuracy, human surveillance, and pattern recognition. Additionally, the report evaluates three ethical, social, and legal challenges of AI in healthcare, including safety and transparency, algorithm fairness and biases, lack of trust, and cybersecurity. The report concludes that AI has the potential to revolutionize healthcare delivery, but it must be used ethically and responsibly.