The integration of Artificial Intelligence (AI) in Guidance and Counseling (GC) services in Indonesia has progressed rapidly, yet ethical challenges and its impact on student character remain a crucial debate. Objective: This study aims to map the typology of AI technology used, analyze the effectiveness of these intelligent instruments, and explore the ethical implications and their impact on student character. Methods: This research employed a Systematic Literature Review (SLR) method on 21 selected scientific articles from 2024-2026 indexed in Sinta, Scopus, and Web of Science. Data were qualitatively analyzed to address three primary research questions. Results: Findings indicate that backward chaining-based expert systems and LLM chatbots dominate precision GC services. AI is proven effective in reducing academic anxiety in 55% of students and improving emotional screening accuracy. However, there is a risk of character degradation, specifically a decrease in independence and academic integrity in 30% of respondents due to digital over-reliance. Conclusion: AI serves as a reliable diagnostic assistant for counselors but cannot replace the human role in empathy and moral authority. AI implementation must be conducted through a regulated Hybrid Counseling model to maintain a balance between technological efficiency and student character development.
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