Artificial intelligence (AI) tools like Chat GPT have gained popularity all over the world. The potential of AI has been embraced in some sectors, such as the legal industry, education, and marketing. However, the integration of AI in the healthcare sector has sparked a debate. In jurisdictions like the EU, USA, and Canada, AI is being utilised for medical purposes, accompanied by regulations and guidelines. Conversely, in countries like India, where regulations for AI in healthcare are still developing, there exists a lack of clarity on regulatory frameworks. This chapter analyses regulations from other jurisdictions and identifies challenges India may face in formulating its own. Drawing on an empirical survey involving participants from diverse sectors, the chapter highlights ethical concerns surrounding AI integration in healthcare, including data misuse and patient privacy breaches. The survey underscores the need for robust regulations to govern AI deployment in India's healthcare sector. Additionally, the chapter emphasises the importance of having a sustainable healthcare sector, which ensures sustainability practices are embedded within AI-driven healthcare services. While existing legislation, like the Information Technology Act of 2000 and the National Health Policy of 2017, offer some safeguards, the absence of specific laws poses challenges. Taking inspiration from regulations like the General Data Protection Regulation (GDPR) of the EU, India can develop laws empowering patients to control their data usage, ensuring transparency and accountability in AI-driven healthcare services.