PurposeThis paper aims to explore students’ intention to use and actual use of the artificial intelligence (AI)-based chatbot such as ChatGPT or Google Bird in the field of higher education in an emerging economic context like Bangladesh.Design/methodology/approachThe present study uses convenience sampling techniques to collect data from the respondents. It applies partial least squares structural equation modeling (PLS-SEM) for analyzing a total of 413 responses to examine the study’s measurement and structural model.FindingsThe results explore that perceived ease of use (PEOU) negatively affects intention to adopt AI-powered chatbots (IA), whereas university students’ perceived usefulness (PU) influences their IA positively but insignificantly. Furthermore, time-saving feature (TSF), academic self-efficacy (ASE) and electronic word-of-mouth (EWOM) have a positive and direct impact on their IA. The finding also reveals that students' IA positively and significantly affects their actual use of AI-based chatbot (AU). Precisely, out of the five constructs, the TSF has the strongest impact on students’ intentions to use chatbots.Practical implicationsStudents who are not aware of the chatbot usage benefits might ignore these AI-powered language models. On the other hand, developers of chatbots may not be conscious of the crucial drawbacks of their product as per the perceptions of their multiple users. However, the findings transmit a clear message about advantages to users and drawbacks to developers. Therefore, the results will enhance the chatbots’ functionality and usage.Originality/valueThe findings of the study alert the teachers, students and policymakers of higher educational institutions to understand the positive outcomes and to accept AI-powered chatbots such as OpenAI’s ChatGPT. Outcomes also notify the AI-product developers to boost the chatbot’s quality in terms of timeliness, user-friendliness, accuracy and trustworthiness.