The present study paper presents a theoretical framework for understanding the language capabilities of artificial intelligence (AI) systems, with a particular emphasis on natural language processing (NLP). The proposed framework, known as the Framework of Key Performative Attributes in AI Discourse (FKPA-AID), is based on a survey of pertinent linguistic theories and AI literature. It specifies six essential dimensions for modeling intelligent conversations: linguistic precision, contextual adaptation, fluid dialogue management, self-learning capacities, socio-emotional sensitivity, and continuity. The study also uses FKPA-AID to assess the strengths and weaknesses of present AI chat capabilities, and uses this analysis to propose prospective research directions for improving machine-based language mastery to better mimic human discourses. The study conducts a literature review of current breakthroughs in AI, notably in the field of natural language processing. It investigates AI's disruptive influence across industries and its role in driving digital transformation, with a particular emphasis on mobile technology applications. The paper also dives into the development of Generative AI (GAI) and Natural Language Processing (NLP), explaining its intricacies, models, applications, and recent advances. Furthermore, it emphasizes the use of AI and NLP in voice-controlled homes and healthcare, with a focus on designing intuitive interfaces and analyzing health data. The primary goal of this literature review is to provide a complete knowledge of the emerging landscape shaped by the combination of AI and NLP. The findings from the studied literature highlight the disruptive potential, ethical difficulties, and practical applicability across multiple disciplines. The paper emphasizes the importance of responsible development in the dynamic and ever-changing world of AI and NLP, and calls for collaborative efforts from interdisciplinary experts such as linguists, computer scientists, psychologists, sociologists, and philosophers to guide future research in this field. The proposed FKPA-AID framework is positioned as a theory-based systematic tool for assessing AI conversation capabilities, contributing to overall improvements in the field.