Background: Across the globe, managing chronic diseases has been recognized as a challenge for patients and healthcare providers. The state of the art in managing chronic conditions requires not only responding to the clinical needs of the patient, but also guaranteeing a comfortable state of wellbeing for them, despite living with the disease. This demands mutual effort between the patient and the physician in constantly collecting data, monitoring, and understanding the disease. The advent of artificial intelligence has made this process easier. However, studies have rarely attempted to analyze how the different artificial intelligence based health coaching systems are used to manage different types of chronic conditions. Objective: Throughout this grounded theory literature review, we aim to provide an overview for the features that characterize artificial intelligence based health coaching systems used by patients with chronic diseases. Methods: During our search and paper selection process process, we use three bibliographic libraries (PubMed, IEEE Xplore, and ACM Digital Library). Using the grounded theory, we extract overarching themes for the artificial intelligence based health coaching systems. These systems are then classified according to their role, platform, type of interaction with the patient, as well as targeted chronic conditions. Of 869 citations retrieved, 31 unique studies are included in this review. Results: The included studies assess 14 different chronic conditions. Common roles for AI-based health coaching systems are: developing adherence, informing, motivating, reminding, preventing, building a care network, and entertaining. Health coaching systems combine the aforementioned roles to cater to the needs of the patients. The combinations of these roles differ between multilateral, unilateral, opposing bilateral, complementing bilateral, one-role-missing, and the blurred role combinations. Conclusion: Clinical solutions and research related to artificial intelligence based health coaching systems are very limited. Clear guidelines to help develop artificial intelligence-based health coaching systems are still blurred. This grounded theory literature review attempted to shed the light on the research and development requirements for an effective health coaching system intended for patients with chronic conditions. Researchers are recommended to use this review to identify the most suitable role combination for an effective health coaching system development.