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A personalized e-learning system is effective in imparting enhanced learning to its users. As compared to a conventional e-learning system, which provides similar contents to each learner, a personalized learning system provides specific learning contents and assessments to the learners. Personalization is based on Artificial Intelligence (AI) based techniques in which appropriate contents for each learner are determined using the level of comprehension of the learner and the preferred modes of learning. This paper presents requirements and challenges for a personalized e-learning system. The paper is focused in elaborating four research questions, which are related to identifying key factors of personalized education, elaborating on state of the art research in the domain, utilizing benefits of AI in personalized education, and determining future research directions. The paper utilizes an extensive survey of current research papers in answering these questions. It provides a comprehensive review of existing solutions in offering personalized e-learning solutions. It also elaborates on different learning models and learning theories, which are significant in providing personalized education. It proposes an efficient framework, which can offer personalized e-learning to each learner and identifies significant directions for future research. The paper is beneficial for academicians and researchers in understanding the requirements of such a system, comprehending its methodologies, and identifying challenges which are needed to be addressed.