This paper evaluates the ability of the integration of artificial intelligence (AI) with telemedicine to enhance access, efficiency, and outcomes of healthcare in rural Canada. Telemedicine is now indispensable in eliminating geographical distance, complemented further by enhanced AI-powered diagnostics and predictive analytics, workflow automation. This narrative literature review gives a thematic analysis of sources, utilizing data from Health Canada, CIHI, TELUS Health, and peer-reviewed research articles. Thematic analysis revealed the consistent obstacles, the most prevalent of which are the lack of broadband and shortage of providers, as well as the emerging potential of AI as a valuable tool to address it. The key findings refer to the fact that AI-enhanced triage systems (such as Babylon, an AI-powered triage system by TELUS Health) help to minimize unnecessary in-person visits, remote patient monitoring with predictive analytics helps to manage chronic diseases, and AI-assisted imaging interpretation is faster when unexpected scenarios such as stroke care are required. According to economic analyses, the widespread use of AI-enhanced telemedicine may save more than $5 billion annually due to benefits in terms of reduced travelling, fewer emergency visits, and increased productivity. The paper draws the conclusion that with the help of adequate infrastructure, well-balanced policy structures, and a culturally appropriate approach to implementation, AI can become the driving force of a more equitable, streamlined, and patient-centered paradigm of a rural health system in Canada.