In this paper, we investigated the applicability of ChatGPT AI in electronics research and development via a case study of applied sensors in embedded electronic systems, a topic that is rarely mentioned in the recent literature, thus providing new insight for professionals and academics. The initial electronics-development tasks of a smart home project were prompted to the ChatGPT system to find out its capabilities and limitations. We wanted to obtain detailed information on the central processing controller units and the actual sensors usable for the specific project, their specifications and recommendations on the hardware and software design flow additionally. Furthermore, an extensive literature survey was requested to see if the bot could offer scientific papers covering the given topic. It was found that the ChatGPT responded with proper recommendations on controllers. However, the suggested sensor units, the hardware and software design were only partially acceptable, with occasional errors in specifications and generated code. The results of the literature survey showed that non-acceptable, fabricated citations (fake authors list, title, journal details and DOI—Digital Object identifier) were presented by the bot. The paper provides a detailed qualitative analysis, a performance analysis and critical discussion of the aforementioned aspects while providing the query set, the generated answers and codes as supplied data with the goal to give added value to electronics researchers and developers if trying to reach out for the tools in their profession.