This study presents a systematic literature review and bibliometric analysis of the application of artificial intelligence in public policy. Using the PRISMA framework, 257 articles published between 1995 and 2025 were retrieved from the Scopus database and analysed through thematic synthesis. The review identifies six interrelated thematic areas within the literature: artificial intelligence (AI)-enabled governance across macro-, meso-, and micro-level policy processes; regulatory and governance frameworks for managing AI systems; ethical challenges related to bias, accountability, and inclusivity; socioeconomic impacts on welfare systems and labour markets; public trust, perception, and social acceptance of AI-driven decision-making; and the role of AI in crisis management and real-time policy evaluation. The findings indicate that the use of artificial intelligence in public policy presents challenges that extend beyond efficiency and technical design, particularly with respect to legitimacy, accountability, and the relationship between citizens and the state. This review highlights the need for context-sensitive regulatory approaches, strengthened ethical safeguards, and more inclusive governance structures.