Although Generative AI (GenAI) has the potential for persona development, many challenges must be addressed. This research systematically reviews 52 articles from 2022-2024, with important findings. First, closed commercial models are frequently used in persona development, creating a monoculture Second, GenAI is used in various stages of persona development (data collection, segmentation, enrichment, and evaluation). Third, similar to other quantitative persona development techniques, there are major gaps in persona evaluation for AI generated personas. Fourth, human-AI collaboration models are underdeveloped, despite human oversight being crucial for maintaining ethical standards. These findings imply that realizing the full potential of AI-generated personas will require substantial efforts across academia and industry. To that end, we provide a list of research avenues to inspire future work.