There has been a surge in employing artificial intelligence (AI) in all areas of language pedagogy, not the least among them language testing and assessment. This study investigated the effects of AI-powered tools on English as a Foreign Language (EFL) learners' speaking skills, psychological well-being, autonomy, and academic buoyancy. Using a concurrent mixed-methods design, the study included 28 upper-intermediate EFL students from an Ethiopian university. We gave the Michigan Language Proficiency Test to evaluate degrees of proficiency before the TOEFL iBT speaking section, which used ChatGPT for scoring and feedback. Speaking abilities were assessed using pretests, immediate posttests, and delayed posttests. Furthermore, we evaluated the impacts on psychological well-being, autonomy, and academic buoyancy using narrative frames. We used one-way repeated measurements to examine the quantitative data and thematically evaluated the qualitative data. According to the results, speaking abilities, psychological well-being, learner autonomy, and academic buoyancy showed notable increases. The results suggest that by improving skill development, offering individualized feedback, and meeting students' emotional and psychological needs, AI systems like ChatGPT have the capacity to transform language assessment and pedagogy. Encouraging the incorporation of AI technologies to enhance educational outcomes and provide a more flexible and adaptable learning environment, the study presents important implications for various stakeholders.