The rapid integration of generative artificial intelligence (GenAI) into the field of English as a Foreign Language (EFL) education presents both significant opportunities for pedagogical innovation as well as ethical challenges concerning learner agency, authorship, and the preservation of voice. While AI-enabled tools can help learners through the provision of instant feedback, having documents translated automatically, and by providing personalised learning support, many learners lack critical AI literacy and the ability to recognise algorithmic bias; interpret probabilistic output; and to ethically engage with AI-generated content. The challenges associated with these issues need to be addressed using pedagogical approaches that are based upon humanistic educational values rather than just technical ability. This systematic literature review is the product of a thorough search of 42 empirical and conceptual studies published between 2015 and 2025 and conducted according to PRISMA 2020 guidelines within the contexts of EFL and higher education. The review examines to what extent humanistic pedagogies have been used to develop critically aware learners for AI literacy in the field of EFL. The thematic synthesis of the studies' findings, and the literature overall, suggests three major themes: affecting/humanistic engagement; developing AI literacy through critical thinking; and agency/authorship in relation to AI-generated texts. In addition, the literature clearly shows a shift toward considering AI not merely as a corrective tool, but rather as an equal yet secondary partner in a human-in-the-loop context. Overall, the research shows that humanistic techniques such as reflective dialogue, questioning AI output, editing and disclosing information openly help learners have a sense of authorship, less anxiety when writing, as well as developing ethical judgement and evaluative judgment in relation to what they have written. It is concluded that in order for AI to be used successfully in EFL, there should be an inclusion of the use of AI into pedagogy that promotes and supports autonomy, empathy and reflection on a critical level.