The utilization of Artificial Intelligence (AI) in Jordan is rapidly gaining momentum, driven by the country’s growing focus on digital transformation and technological innovation. This systematic review examines the key factors influencing AI adoption, evaluates progress across various sectors, identifies prevailing challenges, and provides actionable recommendations. The review synthesizes findings from recent studies, with a particular focus on research conducted between 2020–2024, reflecting a surge in interest in AI-driven solutions. Key factors affecting AI adoption include technological infrastructure, government regulations, business innovativeness, perceived costs, IT knowledge, and social influence. Despite notable progress in sectors such as healthcare, education, and business, several barriers hinder widespread AI adoption. These include limited access to high-speed internet in rural areas, a shortage of skilled AI professionals, concerns about data privacy and cybersecurity, and the high costs associated with AI implementation. Moreover, cultural resistance and a lack of public trust in AI systems further complicate adoption efforts. The review highlights the importance of government-led initiatives to develop clear AI policies, enhance infrastructure, and provide financial incentives. It also emphasizes the need for public–private partnerships and tailored AI training programs to bridge the knowledge gap. Increasing social awareness and fostering a culture of innovation are essential for accelerating AI adoption. This study concludes with recommendations to address the identified challenges and outlines strategies for sustainable AI development in Jordan.