This systematic literature review examines global research on individual-level Artificial Intelligence (AI) competency readiness, focusing on studies published between 2020 and 2025. As public sector institutions increasingly integrate AI technologies into their operations, the preparedness of individual employees is a critical yet often overlooked factor. This review addresses that gap by identifying and synthesizing the key constructs that define AI readiness at the individual level. Following the PRISMA guidelines, thirty empirical articles were selected from databases including Scopus, Web of Science, IEEE Xplore, and SpringerLink. Thematic analysis revealed four core dimensions: AI knowledge and understanding, training exposure, cognitive preparedness, and self-efficacy. These elements collectively form a conceptual framework that characterizes how individuals engage with AI in workplace settings. The findings highlight consistent gaps in conceptual clarity, limited access to structured training, and varied psychological readiness among public sector employees. The proposed framework offers a theoretical foundation for future empirical studies and supports the development of targeted interventions. While the review adopts a global perspective, the resulting framework is intended for application in the Malaysian public sector, where AI adoption is a national strategic priority.