Storytelling and creativity both contribute to children’s development, fostering skills such as communication through shared experiences. However, creativity tends to decline with age. The creation of stories promoted by collaborative activities using digital tools stimulates imagination and creativity. Artificial intelligence (AI) is changing how we tell stories, build relationships, and acquire skills. This systematic literature review presents the state of the art of AI systems that integrate collaborative storytelling practices to enhance children’s creativity. Following PRISMA methodology, 167 results from SCOPUS and WOS databases were reviewed to catalogue these systems, their functionalities and resources, resulting in 18 eligible studies, 15 of which focus on visual, conversational, and tangible storytelling prototypes that promote collaboration between AI and children. The analysis reveals patterns of preference, highlighting operational resources (Python, React and Unity) and AI tools (ChatGPT, StableDifussion, Google Text-to-Speech or Speech-to-Text, Baidu and MusicGen) with a clear preference for OpenAI solutions. The discussion demonstrates how these systems complement the child’s creative process by combining audiovisual elements, especially drawing and sound. Despite challenges of speech and writing recognition, co-creation and customization are key features offering a unique and immersive experience while creating opportunities for learning experiences and supporting creativity, communication, comprehension and imagination. However, the potential of animation and video remains unexplored, establishing an opportunity for designing a system that supports the creation of customized animated cartoons through visual storytelling practices, integrating dialog with assistants and the creation and animation of audiovisual elements in a co-creative process between children and AI.