Artificial intelligence (AI) programs that simulate interactive human conversation, known as Chatbots, are one of the ongoing trends in the global market. Companies adopt Chatbots in order to offer better services to their customers. Businesses have realized that they are able to enhance the process of customer engagement and operational efficiency through Chatbot technology. Furthermore, most of us have experienced communication of this form in many aspects of our everyday life. This paper examines how Chatbots have evolved over the years, what the advantages and disadvantages of using them are and tries to explain the rise taking place nowadays. Subsequently, it explores the potential of applying this technology in educational settings. Personalized and adaptive learning seems to be imperative today and Chatbot technology can offer invaluable services towards that direction. Finally, it investigates the possibility of using them as virtual teaching assistants relieving teachers from the burden of repetitive tasks and helping them focus more on providing quality education to their students.