Artificial Intelligence (AI) has gained significant attention in recent years, permeating various sectors and transforming the way tasks are performed. In the field of education, AI has the potential to revolutionize traditional teaching and learning methodologies, particularly in the context of English as a Second Language (ESL) classrooms. This systematic literature review aims to provide a comprehensive overview of the current state of research on the implementation, challenges, and impacts of AI in ESL classrooms based on different countries. For this purpose, a systematic review has been carried out in ERIC, WOS and Scopus databases. After applying the inclusion and exclusion criteria, the sample was set at 25 articles. The findings reveal that AI technologies offer promising opportunities to enhance ESL instruction. Despite the potential benefits, the review also uncovers several challenges and limitations associated with AI implementation in ESL classrooms. Furthermore, the review identifies the need for further empirical research to measure the long-term effects of AI. In conclusion, this systematic literature review provides valuable insights into the current landscape of AI implementation in ESL classrooms. It highlights the potential of AI technologies to enhance language instruction, while acknowledging the challenges that need to be addressed. The findings of this review can guide educators, policymakers, and researchers in making informed decisions about the integration of AI in ESL classrooms, fostering effective and inclusive language learning environments in the digital era besides to require further research and analysis on AI in Malaysian ESL classroom context.