Artificial Intelligence (AI)'s pervasive presence and variety necessitate diversity and inclusivity (D&I) principles in its design for fairness, trust, and transparency. Yet, these considerations are often overlooked, leading to issues of bias, discrimination, and perceived untrustworthiness. In response, we conducted a Systematic Review to unearth challenges and solutions relating to D&I in AI. Our rigorous search yielded 48 research articles published between 2017 and 2022. Open coding of these papers revealed 55 unique challenges and 33 solutions for D&I in AI, as well as 24 unique challenges and 23 solutions for enhancing such practices using AI. This study, by offering a deeper understanding of these issues, will enlighten researchers and practitioners seeking to integrate these principles into future AI systems.