The integration of artificial intelligence (AI) in healthcare has revolutionized the way medical data and information are managed. While AI offers unprecedented opportunities for improving patient care and outcomes, it also raises concerns about patient privacy and data security. This literature review examines the implications of AI on healthcare data and information management, exploring the benefits, challenges, and potential solutions to ensure patient privacy and data security. By analyzing relevant articles and research, this review provides insights into the current state, future directions, and ethical considerations of AI in healthcare. The review finds that while AI has immense potential, there are critical aspects that need to be addressed to strike a balance between innovation and patient data protection. This study contributes to the growing body of knowledge by offering recommendations and best practices to mitigate risks and harness the full potential of AI in healthcare while upholding patient privacy and data security.