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The only time I've heard it used outside of as a surname (Kay or Kaye) is as a nickname. I knew a sweet older lady named Kathleen and she went by "Kay" and it was perfect for her. Also my friend Sarah calls her sister Katie (just Katie, no full name) "Kay" quite a bit of the time and it fits on her. I like Kay on a girl, and it would actually age quite well, but prefer it as a nickname for Katherine or Kathleen. It would work as a nickname for Kayley but that's so trendy right now.
Kay would be acceptable as a full name for a boy (as in the Authurian legends) but not really as a full name for a girl.