ABSTRACT Study aims to explore the effect of artificial intelligence (AI) performance on customer values and patronage decisions; determine the relationship between AI service enhancement and various levels of perceived value; and adopt customer engagement as a moderator that affects customer value and patronage decision. Study adopts the Means-End Chain theory, synthesised by the Multi-Attribute Value theory to integrate AI performance and perceived values. Adopted quantitative approach and structured equation modelling and study are based on a total of 418 valid samples. Shedding light on how AI resources can be effectively managed within the service paradigm during customer interactions and AI services, this study is expected to offer theoretical and practical insights. Results contribute to the theoretical framework surrounding the relationship between AI and customer patronage decision making, thereby enriching the AI academic field. The study advocates for a symbiotic understanding of AI and customer engagement for improved service performance.