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The integration of artificial intelligence (AI) into medical devices is revolutionizing modern healthcare by improving diagnostic accuracy, enabling real-time monitoring, and aiding clinical decision-making. As healthcare systems worldwide grapple with challenges such as rising costs, aging populations, workforce shortages, and environmental issues, there is a pressing need for sustainable, technology-driven solutions. However, the specific role of AI-powered medical devices in advancing healthcare sustainability is not thoroughly examined in existing literature. This review paper seeks to fill that gap by exploring how AI-enabled medical devices can contribute to sustainable healthcare systems. Utilizing a systematic review methodology, the study analyzes relevant peer-reviewed articles from databases like Scopus and IEEE Xplore. It categorizes current AI-driven medical technologies based on their clinical applications, including diagnostics, patient monitoring, surgical assistance, and rehabilitation. It then evaluates their impact on healthcare sustainability in terms of improved efficiency, cost reduction, and enhanced accessibility. The findings indicate that AI-driven devices not only enhance health outcomes but also facilitate early interventions, minimize the need for repeated procedures, and support remote care, thereby alleviating pressure on healthcare resources. In conclusion, while AI-based medical devices present promising avenues for creating more sustainable and resilient healthcare systems, realizing their full potential will require coordinated efforts in research, regulation, and system integration. The paper also suggests future research directions to help stakeholders effectively and equitably adopt intelligent healthcare technologies.