Artificial Intelligence (AI) has transformed recruitment by automating job matching, resume screening, candidate assessment, and communication. This study systematically reviews 60 peer-reviewed papers published between 2020 and 2025 to explore how AI-driven recruitment influences efficiency, fairness, candidate experience, and organizational outcomes. The review identifies key contributions of machine learning, natural language processing, chatbots, predictive analytics, and algorithmic decision systems. Findings show that AI reduces hiring time, improves decision accuracy, enhances employer branding, and supports large-scale candidate processing. However, challenges such as hidden bias, lack of explainability, privacy issues, and candidate trust remain significant. This review contributes by mapping contemporary trends, identifying research gaps, and presenting structured insights for practitioners and researchers. The study concludes that AI can significantly enhance recruitment effectiveness only when aligned with ethical design, transparency, and human oversight.