This paper explores the impact of Artificial Intelligence (AI) chatbots on management practices, taking in consideration their challenges and benefits. The author conducted a systematic literature review and analyzed the selected articles with usage of content analysis to help identify common themes and patterns. The findings suggest that Artificial Intelligence chatbots have a huge impact on customer service, data analysis, and automation of routine tasks. However, there are also several challenges linked to the implementation of chatbots, such as understanding complex queries and making sure users get accurate responses. From a technical point of view, chatbots use a combination of machine learning algorithms, NLP, and deep learning techniques. This paper provides important insights into the potential of AI chatbots for transforming main management practices and underlines the need for careful planning and consideration of the challenges noticed. This paper will be of interest to business professionals, researchers interested in Artificial Intelligence chatbots, and academics, customer service, and management practices. The author's contribution stands in providing a broad overview of the impact of AI chatbots on management practices and seeking their potential for transforming the way organizations conduct business.