In recent years, the Azerbaijan Republic has been making strides in adopting Artificial Intelligence (AI) technologies within its healthcare sector, reflecting a growing global trend of integrating AI into medical practices. Azerbaijan Republic’s healthcare system has embraced AI-driven solutions to improve medical services. AI algorithms are being utilized to analyze medical images, such as endoscopic pictures, X-rays, MRIs, and CT scans, aiding in the early detection of diseases like cancer. These technologies enable more accurate and rapid diagnosis, improving patient outcomes and reducing healthcare costs. Consequently, the policy and regulation of AI in medicine must be a critical endeavor that balances the transformative potential of AI with ethical and safety considerations. Striking the right balance requires addressing challenges such as patient safety, data privacy, bias mitigation, accountability, and transparency.Regulations must ensure rigorous testing, data protection, and the fair distribution of benefits while also mandating transparency in AI algorithms to foster trust among healthcare professionals and patients. Collaborative efforts among policymakers, healthcare practitioners, and AI developers are essential to harness the potential of AI while upholding ethical standards and patient well-being. This study analyzes the secondary data and explains the policy rules and regulations in AI in medical practices in developing countries, specifically in the Azerbaijan Republic.