Anxiety disorders are among the most prevalent mental health conditions globally, causing significant personal and societal burdens. Traditional therapies, while effective, often face barriers such as limited accessibility, high costs, and the stigma associated with seeking mental health care. The emergence of artificial intelligence (AI) chatbots offers a novel solution by providing accessible, cost-effective, and immediate support for individuals experiencing anxiety. This comprehensive review examines the evolution, efficacy, advantages, limitations, challenges, and future perspectives of AI chatbots in the treatment of anxiety disorders. A methodologically rigorous literature search was conducted across multiple databases, focusing on publications from 2010 to 2024 that evaluated AI chatbot interventions targeting anxiety symptoms. Empirical studies demonstrate that AI chatbots can effectively reduce anxiety symptoms by delivering therapeutic interventions like cognitive-behavioral therapy through interactive and personalized dialogues. The advantages include increased accessibility without geographical or temporal limitations, reduced costs, and an anonymity that encourages openness and reduces stigma. However, limitations persist, such as the lack of human empathy, ethical and privacy concerns related to data security, and technical challenges in understanding complex human emotions. The key challenges identified involve enhancing the emotional intelligence of chatbots, integrating them with traditional therapy, and establishing robust ethical frameworks to ensure user safety and data protection. Future research should focus on improving AI capabilities, personalization, cultural adaptation, and user engagement. In conclusion, AI chatbots represent a promising adjunct in treating anxiety disorders, offering scalable interventions that can complement traditional mental health services. Balancing technological innovation with ethical responsibility is crucial to maximize their potential benefits.