Conversational artificial intelligence (AI) has shown strong capabilities in providing low-cost and timely interventions for a wide range of people and increasing well-being. Therefore, this study examined ChatGPT’s efficacy in conducting psychological counseling and its potential for providing accessible psychological interventions, especially in school settings. This study assessed the strengths and limitations of AI to inform future research. Data were generated from ChatGPT’s responses to 80 counseling questions that college students asked during a school counseling setting. All the responses generated during these simulated counseling sessions were then analyzed using three primary metrics—warmth, empathy, and acceptance—following APA guidelines. The analysis adopted several natural language processing methodologies for emotion detection and empathy measurement to quantify ChatGPT’s high efficacy in presenting the appropriate emotions and reactions for counseling. Some responses demonstrated randomness, which is crucial for consideration regarding the use of ChatGPT or relevant technology in psychological counseling. The Discussion section also highlights future directions in the application of conversational AI to enhance students’ mental health.