Artificial Intelligence (AI) has transformed consumer interaction, evolving from automation to emotionally attuned engagement. This systematic literature review synthesized 44 studies to understand how AI facilitates consumer engagement through emotion regulation. Following the PRISMA protocol, studies were retrieved from Google Scholar and Scopus and evaluated using quality assessment criteria adapted from Tranfield et al. (2003) and Critical Appraisal Skills Program CASP (2020). The findings reveal that AI techniques, such as sentiment analysis, recommender systems, chatbots, and affective computing, enhance engagement across multiple stages of the customer journey. However, most studies conceptualize AI as a technological enabler rather than a psychological co-regulator of consumer emotions. By integrating the Stimulus-Organism-Response (S-O-R) framework, Gross’s (1998) emotional regulation theory and consumer engagement theory. This review reframes AI as an active participant in emotion regulation. This study contributes to the underlying mechanism by guiding organizations toward emotionally intelligent AI design. Future research directions are proposed to strengthen theoretical integration, methodological rigor, and ethical considerations in AI-driven consumer engagement.