Technological innovation has transformed educational settings, enabling artificial intelligence (AI)-driven teaching and learning processes. While AI is still in its embryonic stage in education, generative artificial intelligence has evolved rapidly, significantly shifting the teaching and learning context. With no clarity about the impacts of generative artificial intelligence on education, there is a need to synthesise research findings to demystify generative artificial intelligence and address concerns regarding its application in the teaching and learning process. This paper systematically synthesises studies on generative artificial intelligence in teaching and learning to understand key arguments and stakeholders’ perceptions of generative artificial intelligence in teaching and learning. The systematic review reveals five main domains of research within the field: (i) current awareness (understanding) of generative artificial intelligence, (ii) stakeholder perceptions, (iii) mechanisms for adopting generative artificial intelligence, (iv) issues and challenges of implementing generative artificial intelligence, and (v) contributions of generative artificial intelligence to student performance. This review examines the practical and policy implications of generative artificial intelligence, providing recommendations to address the concerns and challenges associated with generative artificial intelligence-driven teaching and learning processes.