In the digital era, the integration of artificial intelligence (AI) in education has ushered in transformative changes, redefining teaching methodologies, curriculum planning, and student engagement. This review paper delves deep into the rapidly evolving landscape of digital education by contrasting the capabilities and impact of OpenAI's pioneering text generation tools like Bing Chat, Bard, Ernie with a keen focus on the novel ChatGPT. Grounded in a typology that views education through the lenses of system, process, and result, the paper navigates the multifaceted applications of AI. From decentralizing global education and personalizing curriculums to digitally documenting competence-based outcomes, AI stands at the forefront of educational modernization. Highlighting ChatGPT's meteoric rise to one million users in just five days, the study underscores its role in democratizing education, fostering autodidacticism, and magnifying student engagement. However, with such transformative power comes the potential for misuse, as text-generation tools can inadvertently challenge academic integrity. By juxtaposing the promise and pitfalls of AI in education, this paper advocates for a harmonized synergy between AI tools and the educational community, emphasizing the urgent need for ethical guidelines, pedagogical adaptations, and strategic collaborations.