The growth of Artificial Intelligence (AI) and its implementation in the field of education has transformed the education paradigm. Therefore, this increases the need for understand the current research areas and the future avenues. Through a systematic literature review on AI application on education, machine learning and bibliometric analysis, this study focuses on critical research problems in the field, methodologies used and future research directions. The analysis provided three clusters based on classification using machine learning and content analysis using VOSviewer software. Furthermore, sub-clusters are obtained and analysed to understand the sub-areas in each cluster. From the analysis, it is observed that the educational institutions should adopt a system oriented approach while implementing AI. Further, trust, transparency, sustainability are critical enablers of adoption. Managers and policy makers should focus on evidence-based adoption models for AI implementation strategies.