In recent years, language practitioners have paid increasing attention to artificial intelligence (AI)'s role in language programs. This study investigated the impact of AI-assisted language assessment on L2 learners' foreign language anxiety (FLA), attitudes, motivation, and writing skills. The study adopted a sequential exploratory mixed-methods design. Divided between an experimental group (receiving AI-assisted assessment) and a control group (receiving paper-format assessment), the participants were 70 intermediate English learners from two intact university classes in Bangladesh. The TOEFL iBT writing section measured writing skills, while the study also investigated perceptions and experiences of FLA, attitudes, and motivation using narrative frames. Thematic analysis of the narrative data showed that AI-assisted assessment greatly raised learners' motivation, improved attitudes about language acquisition, and lowered FLA. According to quantitative analysis, the pretest writing abilities across groups showed no appreciable variation. Even though the difference was not statistically significant on the posttest, the experimental group exceeded the control group. The results of this study imply that AI-assisted assessments can generate a helpful learning environment, lower anxiety, improve attitudes, and increase motivation, thereby delivering useful information. Future studies should investigate long-term consequences, and further improvements to AI tools should optimize educational advantages--attitudes, motivation, and writing skills.