Many industrial processes, from manufacturing to food processing, incorporate rotating elements as principal components in their production chain. Failure of these components often leads to costly downtime and potential safety risks, further emphasizing the importance of monitoring their health state. Vibration signal analysis is now a common approach for this purpose, as it provides useful information related to the dynamic behavior of machines. This research aimed to conduct a comprehensive examination of the current methodologies employed in the stages of vibration signal analysis, which encompass preprocessing, processing, and post-processing phases, ultimately leading to the application of Artificial Intelligence-based diagnostics and prognostics. An extensive search was conducted in various databases, including ScienceDirect, IEEE, MDPI, Springer, and Google Scholar, from 2020 to early 2024 following the PRISMA guidelines. Articles that aligned with at least one of the targeted topics cited above and provided unique methods and explicit results qualified for retention, while those that were redundant or did not meet the established inclusion criteria were excluded. Subsequently, 270 articles were selected from an initial pool of 338. The review results highlighted several deficiencies in the preprocessing step and the experimental validation, with implementation rates of 15.41% and 10.15%, respectively, in the selected prototype studies. Examination of the processing phase revealed that time scale decomposition methods have become essential for accurate analysis of vibration signals, as they facilitate the extraction of complex information that remains obscured in the original, undecomposed signals. Combining such methods with time–frequency analysis methods was shown to be an ideal combination for information extraction. In the context of fault detection, support vector machines (SVMs), convolutional neural networks (CNNs), Long Short-Term Memory (LSTM) networks, k-nearest neighbors (KNN), and random forests have been identified as the five most frequently employed algorithms. Meanwhile, transformer-based models are emerging as a promising venue for the prediction of RUL values, along with data transformation. Given the conclusions drawn, future researchers are urged to investigate the interpretability and integration of the diagnosis and prognosis models developed with the aim of applying them in real-time industrial contexts. Furthermore, there is a need for experimental studies to disclose the preprocessing details for datasets and the operational conditions of the machinery, thereby improving the data reproducibility. Another area that warrants further investigation is differentiation of the various types of fault information present in vibration signals obtained from bearings, as the defect information from the overall system is embedded within these signals.