Building upon the foundational Home Literacy Environment (HLE) model, this study developed a contemporary framework that integrates digital literacy practices and the emerging role of Artificial Intelligence (AI) technologies, such as ChatGPT, alongside traditional literacy activities. Utilizing hierarchical linear regressions, findings from 74 U.S. families with children aged five to seven revealed a non-significant correlation between children's literacy skills and both digital literacy practices and the use of ChatGPT by parents and children. Despite this, the study identified a high level of engagement in digital literacy activities while reaffirming the enduring importance of parental involvement and print-based reading resources in fostering children's language development. As one of the first studies to integrate literacy-related digital activities and AI-based tools like ChatGPT into the HLE framework, these findings highlight the growing role of digital tools within the HLE. The results contribute to the evolving understanding of the HLE in the digital age, underscoring the need for ongoing research to explore the long-term effects of digital and AI technologies on literacy development and advocating for educational strategies that ensure equitable access to both digital and traditional literacy resources. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://bibliotheek.ehb.be:2222/en-US/products/dissertations/individuals.shtml.]