Data generated from sources such as wearable sensors, medical imaging, personal health records, pathology records, and public health organizations have resulted in a massive information increase in the medical sciences over the last decade. Advances in computational hardware, such as cloud computing, Graphical Processing Units (GPUs), and Tensor Processing Units (TPUs), provide the means to utilize these data. Consequently, many Artificial Intelligence (AI)-based methods have been developed to infer from large healthcare data. Here, we present an overview of recent progress in artificial intelligence and biosensors in medical and life sciences. We discuss the role of machine learning in medical imaging, precision medicine, and biosensors for the Internet of Things (IoT). We review the most recent advancements in wearable biosensing technologies that use AI to assist in monitoring bodily electro-physiological and electro-chemical signals and disease diagnosis, demonstrating the trend towards personalized medicine with highly effective, inexpensive, and precise point-of-care treatment. Furthermore, an overview of the advances in computing technologies, such as accelerated artificial intelligence, edge computing, and federated learning for medical data, are also documented. Finally, we investigate challenges in data-driven AI approaches, the potential issues that biosensors and IoT-based healthcare generate, and the distribution shifts that occur among different data modalities, concluding with an overview of future prospects.