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As Artificial Intelligence (AI) transforms the domain of diplomacy in the 21st century, this research addresses the pressing need to evaluate the dualistic nature of these advancements, unpacking both the challenges they pose and the opportunities they offer. It has been almost a year since the launch of ChatGPT by OpenAI that revolutionised various work domains with its capabilities. The scope of application of these capabilities to diplomacy is yet to be fully explored or understood. Our research objective is to systematically examine the current discourse on Digital and AI Diplomacy, thus informing the development of a comprehensive framework for the role of Generative AI in modern diplomatic practices. Through the systematic analysis of 230 scholarly articles, we identified a spectrum of opportunities and challenges, culminating in a strategic framework that captures the multifaceted concepts for integration of Generative AI, setting a course for future research and innovation in diplomacy.