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The increasing global demand for mental health services has highlighted many shortcomings in access, affordability, and timeliness of care. In response, new applications powered by artificial intelligence (AI) in the form of chatbots have been developed to provide increased, scalable access to emotional support, cognitive behavioral techniques, and self-help resources. In this paper, we review the potential for the use of AI chatbots in mental health support and interventions through a focused analysis of applications, clinical evaluations, and user impressions. Moreover, key examples of applications, for example, Woebot, Wysa, and Youper, yielded some promising results for individuals who experience symptoms of anxiety and/or depression, especially individuals seeking low-barrier, less stigmatizing access to support. Several studies also found benefits in mood charting, facilitating emotional expression, and self-reflection. However, operational usability of AI applications often depends on design efficacy, adherence to evidence-informed therapeutic models, and active user participation. Indeed, while chatbots are cost-effective and scalable, there are some limitations. Examples of limitations include limited efficacy for some emotional crises that more complex, personalized interventions may deem necessary, insufficient personalization, and lack of true empathy. Additionally, clinical implications cannot progress without further addressing ethical concerns regarding data privacy, informed consent from users, and algorithmic bias in AI responses. While AI chatbots are not substitutes for licensed mental health professionals, they represent a growing complement in the continuum of care. This paper concludes by emphasizing the need for hybrid human-AI models and stronger regulatory oversight to ensure responsible, safe, and effective deployment.