This study examines the transformative impact of Artificial Intelligence (AI) on Delhi’s healthcare system and medical tourism landscape. As a leading medical tourism destination, Delhi attracts thousands of international patients due to its advanced healthcare infrastructure and cost-effective treatments. Using Principal Component Analysis (PCA) and Principal Component Correlation (PCC), the study analyzes key healthcare indicators such as healthcare resources, bed capacity, doctor availability and treatment diversity highlighting their significance in Delhi’s competitive positioning in medical tourism. AI has the potential to enhance both healthcare delivery and medical tourism by optimizing clinical workflows, reducing diagnostic errors and improving patient outcomes. AI-powered diagnostics can increase accuracy, while predictive models can forecast patient inflows, aiding in infrastructure planning. Additionally, AI-driven platforms can customize medical tourism packages, enhancing patient satisfaction and operational efficiency. The integration of machine learning, natural language processing and predictive analytics can address critical gaps in healthcare services and medical tourism offerings, further solidifying Delhi’s position as a global healthcare hub. The study advocates strategic AI investments to strengthen healthcare capacity, develop intelligent decision-support systems and create personalized medical tourism experiences. By embracing AI, Delhi can enhance its healthcare system and sustain its growth as a premier destination for medical tourism, driving economic development