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Large language models (LLMs), such as OpenAI’s GPT-4, Google’s Bard or Meta’s LLaMa, have created unprecedented opportunities for analysing and generating language data on a massive scale. Because language data have a central role in all areas of psychology, this new technology has the potential to transform the field. In this Perspective, we review the foundations of LLMs. We then explain how the way that LLMs are constructed enables them to effectively generate human-like linguistic output without the ability to think or feel like a human. We argue that although LLMs have the potential to advance psychological measurement, experimentation and practice, they are not yet ready for many of the most transformative psychological applications — but further research and development may enable such use. Next, we examine four major concerns about the application of LLMs to psychology, and how each …