This review explores the integration of Human-Computer Interaction (HCI) principles in AI to advance Human-Centered Artificial Intelligence (HCAI). It highlights how these fields intersect to create user-friendly AI systems that enhance human capabilities and align with human values. Given the recent interest of HCI in user-centered design and AI in technical innovation, this paper bridges this divide by infusing principles from HCI into AI systems. Relevant peer-reviewed articles, conference papers, and case studies have been selected from leading databases like IEEE Xplore, ACM Digital Library, ScienceDirect, and Google Scholar, encompassing publications from 2017 to 2024. The inclusion criteria for the review focus on interdisciplinary approaches, real-world applications, and challenges of HCAI, while studies that do not have a clear methodology or lack relevance to HCAI were excluded. This paper identifies some of the key gaps, highlights the successful applications of HCAI across healthcare, edu-cation, and entertainment, and discusses various challenges that have arisen, such as bias, transparency, and balancing automation with human control. Findings reveal that iterative design and hu-man-centered frameworks will lead to better usability and ethical fit for HCAI, but significant challenges remain. This study proposes an integrative framework for bringing HCI principles into AI design through interdisciplinary collaboration in developing systems that will enhance human capabilities while considering ethical aspects. Future directions include responsible AI, personalized healthcare, and effective human-AI collaboration.