The World Health Organization promotes healthy living through regular physical activities, such as exercise and sports, as well as access to healthcare and rehabilitation services for people with motor dysfunctions. However, there is a lack of specialized personnel and increased costs associated with such activities. These have led to the increased use of machine learning for the analysis and evaluation of human motion during exercise. To study the latest advancements in this area, a systematic literature review focusing on publications from 2017 to 2021 was performed. As a result, 88 relevant publications were identified, which developed both shallow machine learning and deep learning algorithms. The results indicated that algorithms for human motion assessment should provide personalized and informative assessments, with explainable and interpretable outcomes, that can be computed in real-time or concurrently with the execution of an exercise. Furthermore, they should be easy to adapt based on the needs of applications and should be able to perform with different motion capture systems. This has been challenging because of the usually small amount of collected data, the lack of large open datasets, and the unique characteristics of exercise motions. Based on the above findings, guidelines for the development of such algorithms are proposed and discussed. They relate to the selection of the type of assessment, handling data imbalances, selecting of motion capture technologies, balancing between accuracy and speed, selecting the right algorithm, performing concurrent assessment during an exercise, personalization and scalability, and evaluation.