This PRISMA-based literature review aims to assess and analyze the measurement of student engagement dimensions within AI ChatGPT interactions. The central question is how to effectively evaluate these dimensions using established methods and leverage insights to enhance AI ChatGPT’s capacity to foster student engagement. The systematic review of PRISMA methodology identifies 16 relevant peer-reviewed research. All relevant and eligible research according to PRISMA methodology are analyzed to comprehend the intricacies of student engagement in AI ChatGPT interactions. The synthesis of these findings unveils the current state of knowledge on AI ChatGPT’s influence on student engagement and uncovers opportunities for future research. This review underscores AI ChatGPT’s potential as an educational tool, offering personalized experiences that bolster student engagement and learning outcomes. The systematic review established that, even though using ChatGPT has many advantages such as enhancing student engagement and academic involvement and supporting inquiry-based learning. However, there are some negative aspects such as lacking empathy and human emotions, limited contextual understanding, increased technology dependence and possibility of Inaccurate or Biased Information. In summary, this PRISMA-based review contributes to understanding the measurement of student engagement within AI ChatGPT. It identifies best practices, laying the foundation for further research and development. By optimizing AI ChatGPT’s effectiveness, educators and developers can craft more engaging and tailored learning experiences, ultimately enhancing educational outcomes.