Aim: Artificial intelligence (AI) is making significant inroads into the field of psychiatry, offering new tools and applications. ChatGPT, a specific chatbot, is at the forefront of this digital revolution. AI’s use in psychiatry ranges from identifying psychiatric symptoms, predicting treatment responses, and improving medication adherence to assisting in patient education, monitoring, and bridging gaps in mental health care. Materials and Methods: This review used a literature study method. Results: ChatGPT functions as a clinical decision support tool. It can analyse patient data and provide diagnostic insights, recommend evidence-based treatments, and offer drug information. It has demonstrated proficiency in generating summaries from medical records, saving clinicians time and enabling them to focus on patient care. Additionally, chatbots like ChatGPT serve as therapist assistants, offering emotional support between therapy sessions and potentially conducting psychotherapy. Studies have shown positive outcomes, with chatbots reducing depression, anxiety symptoms, and providing 24/7 availability for crisis situations. Users find them non-judgmental and comfortable for discussing sensitive issues. Despite their potential, chatbots have limitations, such as the risk of incorrect or biased information due to their training data. They lack genuine understanding, creativity, and the ability to clarify user input. Ethical considerations regarding responsibility and data usage are paramount. Conclusion: AI, particularly ChatGPT, holds substantial promise in modern psychiatry, enhancing diagnostics, patient education, monitoring, and therapeutic support. Its integration into everyday psychiatric practice requires careful use, continuous oversight, and ethical considerations. Psychiatrists must become more familiar with AI tools to leverage their benefits in patient care.