Artificial Intelligence (AI) is evolving rapidly in healthcare, and various AI applications have been developed to solve some of the most pressing problems that health organizations currently face. It is crucial for health leaders to understand the state of AI technologies and the ways that such technologies can be used to improve the efficiency, safety, and access of health services, achieving value-based care. This article provides a guide to understand the fundamentals of AI technologies (ie, machine learning, natural language processing, and AI voice assistants) as well as their proper use in healthcare. It also provides practical recommendations to help decision-makers develop an AI strategy that can support their digital healthcare transformation.