Telemedicine has emerged as a transformative approach in modern healthcare, addressing critical challenges related to accessibility, efficiency, and personalized care. The role of artificial intelligence (AI) in telemedicine is enhancing its scope through preliminary diagnostics, personalized health recommendations, and specialist referrals. This paper attempts to provide a thorough review of the existing AI-driven technologies in telemedicine, their applications, merits, and limitations. Furthermore, the study assesses how AI can benefit patients, enhance resource allocation, and streamline healthcare processes. Concluding discussion on challenges which include the ethics, data privacy, and equity in access, the paper runs through future avenues of research which incorporate developing a novel AI-based instrument that can complement telemedicine by mitigating bottlenecks in current health delivery systems.