This paper evaluates the impact of AI-based chatbot services on the FMCG retail sector’s customer satisfaction. The data of 615 respondents was collected from FMCG customers in organized retail shops in and around the Albaha region of Saudi Arabia. The study acquired data from consumers who used chatbot services for the purchase of FMCS products. Seven hypotheses were formulated and tested to explain the relationships between these variables. It was found that responsiveness is related to customer satisfaction and affects the conversational tone. Further, the adopted conversational tone also influenced customer satisfaction, and the customers were able to process it better. Privacy concerns have an important role in how customers communicate online. This study contributes to the choice of FMCG retailers as far as customizing the chatbot services to ensure that their conversational tone is responsive and mindful of privacy matters in an attempt to increase satisfaction. Further this study can be generalized in other geographic regions with similar setup in order to understand the consumer behavior.