Nigerian polytechnic libraries face increasing pressure to preserve electronic records and improve administrative efficiency amid infrastructural and human capacity constraints. This study investigates the role of Artificial Intelligence (AI) using PRISMA methodology in addressing these challenges. Guided by the Technology–Organization–Environment (TOE) framework, a qualitative systematic literature review was conducted on 18 studies published between 2019 and 2025. Findings reveal that AI applications, such as AI-RAMS for automated classification, NLP-powered metadata tagging, predictive preservation, robotic process automation (RPA), and AI chatbots, enhance retrieval speed, reduce errors, and strengthen record security. Despite these benefits, barriers including unstable infrastructure, low AI literacy, policy gaps, and ethical concerns persist. A context-sensitive implementation framework was proposed, emphasizing national policy development, capacity building, pilot projects, infrastructure modernization, and ethical oversight. The study provides practical guidance for Nigerian polytechnics to adopt AI-driven electronic records management, ensuring sustainable, efficient, and secure library operations.