Artificial Intelligence (AI) has gained much research interest recently and is rapidly transforming education around the world. However, there is still limited research with regards to its applications and effects on learning, in comparison to the available studies conducted at higher levels of education. This paper presents a systematic literature review conducted following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines. It explores the geographical distribution and frequency of research on AI in elementary education between 2013 and 2023. It provides an analysis of the various educational areas in which AI has been applied, and it synthesizes reported benefits and challenges, culminating in recommendations for future research. This analysis shows a growing interest in exploring perspectives around using AI in teaching and learning, spotlighting, in the meantime, significant research gaps, including the long-term effects on child development, privacy issues, and role of the teacher in the classroom. Hence, AI's potential to enhance educational experiences is evident, though more research is needed to address ethical concerns and ensure responsible implementation. Recommendations include further investigation into AI's impact on student learning outcomes and teacher roles and the development of comprehensive ethical frameworks for AI use in schools.