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The explosion of AI across all facets of society has given rise to the need for AI education across domains and levels. AI literacy has become an important concept in the current technological landscape, emphasizing the need for individuals to acquire the necessary knowledge and skills to engage with AI systems. This systematic review examined 47 articles published between 2019 and 2023, focusing on recent work to capture new insights and initiatives given the burgeoning of the literature on this topic. In the initial stage, we explored the dataset to identify the themes covered by the selected papers and the target population for AI literacy efforts. We identified that the articles broadly contributed to one of the following themes: a) conceptualizing AI literacy, b) prompting AI literacy efforts, and c) developing AI literacy assessment instruments. We also found that a range of populations, from pre-K students to adults in the workforce, were targeted. In the second stage, we conducted a thorough content analysis to synthesize six key constructs of AI literacy: Recognize, Know and Understand, Use and Apply, Evaluate, Create, and Navigate Ethically. We then applied this framework to categorize a range of empirical studies and identify the prevalence of each construct across the studies. We subsequently review assessment instruments developed for AI literacy and discuss them. The findings of this systematic review are relevant for formal education and workforce preparation and advancement, empowering individuals to leverage AI and drive innovation.