ChatGPT (GPT-3.5), an intelligent Web-based tool capable of conducting text-based conversations akin to human interaction across various subjects, has recently gained significant popularity. This surge in interest has led researchers to examine its impact on numerous fields, including education. The aim of this paper is to investigate the perceptions of undergraduate students regarding ChatGPT’s utility in academic environments, focusing on its strengths, weaknesses, opportunities, and threats. It responds to emerging challenges in educational technology, such as the integration of artificial intelligence in teaching and learning processes. The study involved 257 students from two university departments in Greece—namely primary and early childhood education pre-service teachers. Data were collected using a structured questionnaire. Various methods were employed for data analysis, including descriptive statistics, inferential analysis, K-means clustering, and decision trees. Additional insights were obtained from a subset of students who undertook a project in an elective course, detailing the types of inquiries made to ChatGPT and their reasons for recommending (or not recommending) it to their peers. The findings offer valuable insights for tutors, researchers, educational policymakers, and ChatGPT developers. To the best of the authors’ knowledge, these issues have not been dealt with by other researchers.