Artificial intelligence-assisted recruitment tools are rapidly transforming how organisations assess and hire talent. However, the use of artificial intelligence (AI) in hiring processes has also raised significant concerns, particularly regarding fairness, transparency, and its impact on organisational stakeholders. Despite these concerns, limited research has been conducted on the challenges organisations, recruiters, and employees face when integrating AI into recruitment processes. This paper aims to conduct a literature review to examine these challenges from multiple perspectives within the organisational context. Our study identifies key AI applications in recruitment, explores the challenges encountered by recruiters, employees, and organisations, and proposes an integrative framework using the Technology-Organisation-Environment (TOE) framework to examine how the identified challenges influence their use of AI in hiring processes. The findings offer theoretical and practical insights, particularly by demonstrating how the interplay of technological, organisational, and environmental factors shapes the use of AI in recruitment. Future research directions are also discussed.