Online proctoring services are also on the rise, and AI-based proctoring systems (henceforth called as AIPS) have taken the market by storm. Online proctoring systems (henceforth called as OPS), in general, makes use of online tools to maintain the sanctity of the examination. While most of this software uses various modules, the sensitive information they collect raises concerns among the student community. There are various psychological, cultural and technological parameters need to be considered while developing AIPS. This paper systematically reviews existing AI and non-AI-based proctoring systems. Through the systematic search on Scopus, Web of Science and ERIC repositories, 43 paper were listed out from the year 2015 to 2021. We addressed 4 primary research questions which were focusing on existing architecture of AIPS, Parameters to be considered for AIPS, trends and Issues in AIPS and Future of AIPS. Our 360-degree analysis on OPS and AIPS reveals that security issues associated with AIPS are multiplying and are a cause of legitimate concern. Major issues include Security and Privacy concerns, ethical concerns, Trust in AI-based technology, lack of training among usage of technology, cost and many more. The most reasonable conclusion we can reach in the present is that the ethical justification of these technologies and their various capabilities requires us to rigorously ensure that a balance is struck between the concerns with the possible benefits to the best of our abilities. Our work further addresses the issues in AIPS in human and technological aspect. It also lists out key points and new technologies that have only recently been introduced but could significantly impact online education and OPS in the years to come.