Conversational Artificial Intelligence (AI) and Natural Language Processing have advanced significantly with the creation of a Generative Pre-trained Transformer (ChatGPT) by OpenAI. ChatGPT uses deep learning techniques like transformer architecture and self-attention mechanisms to replicate human speech and provide coherent and appropriate replies to the situation. The model mainly depends on the patterns discovered in the training data, which might result in incorrect or illogical conclusions. In the context of open-domain chats, we investigate the components, capabilities constraints, and potential applications of ChatGPT along with future opportunities. We begin by describing the components of ChatGPT followed by a definition of chatbots. We present a new taxonomy to classify them. Our taxonomy includes rule-based chatbots, retrieval-based chatbots, generative chatbots, and hybrid chatbots. Next, we describe the capabilities and constraints of ChatGPT. Finally, we present potential applications of ChatGPT and future research opportunities. The results showed that ChatGPT, a transformer-based chatbot model, utilizes encoders to produce coherent responses. K E Y W O R D S ChatGPT, conversational artificial intelligence, deep learning, generative pre-trained transformer, large language models, natural language processing, self-attention mechanisms 1 INTRODUCTION Does a computer think? is a straightforward but complicated query. 1 The term "Artificial Intelligence" (AI) was first used by researchers in 1955 to describe computers and processes that mimic human intellect and make judgments similarly to discover a solution to this dilemma. 2 Researchers first envisioned that these machines could transform into intelligent forms and introduced the Three Laws of Robotics to set the rules that bots should adhere to and cannot be bypassed. 3 At this time, the term "[ro]bots" was first used inČapek's (1921) science fiction play. 4,5 In November 2022, OpenAI, a renowned AI research institution, introduced a Generative Pre-trained Transformer (ChatGPT), a state-of-the-art chatbot system. ChatGPT, an instance of Natural Language Processing (NLP), excels in realistic conversation and possesses the ability to handle follow-up queries, acknowledge errors, critique flawed assumptions, and decline inappropriate requests. 6,7 Although ChatGPT's main purpose was to mimic human speech, it is capable of much more than that such as generating poems, stories, and novels. 8 The development of ChatGPT heralds the future arrival of cutting-edge AI technology that will genuinely test the validity of the Turing Test and show whether machines are capable of thinking like humans. 9 ChatGPT is a revolutionary conversational AI-powered bot that demonstrates the paradigm shift occurring not only in the educational landscape but also in every aspect of our lives. 5 It is unclear if it would ultimately pass the Turing Test, but it is certainly revolutionary. 10 ChatGPT is based on GPT-3, the third version of the OpenAI GPT series, which is more advanced than traditional chatbots in terms of scale (175 billion parameters compared to 1.5 billion in GPT-2), a larger dataset used as training data, more fine-tuning, enhanced capabilities, and more human-like text generation. 11 ChatGPT can create human-like text and retain a conversational style, enabling more realistic natural interactions. 12 These capabilities are made possible by the combination of NLP and a generative AI that depends on deep learning. 13,14 Internet Technology Letters. 2024;e530. wileyonlinelibrary.com/journal/itl2