Artificial Intelligence (AI) is disrupting the service sector and its ecosystem. The adoption of artificial intelligence has created innovative service-technologies such as service robots, chatbots and voice assistants. These innovative AI-based services have revolutionized multiple aspects of our daily lives, and yet we have a sparse understanding of the factors influencing the continuance usage intention of consumers. Hence, this study aims to determine the factors that influences the continuance usage intention of AI-enabled services. The present study seeks to address this research gap by developing and validating a conceptual model drawing on the parasocial relationship theory as well as the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2). A quantitative research approach has been selected for this research. To collect the data, an online survey was distributed to among consumers. 356 useful responses were available to test the proposed research model. The respondents of this study were located in Oman and 52% of the total sample were female, whereas 48% were male. Partial least squares structural equation modeling (SmartPLS 4) SEM was used to analyze the empirical data. The results show that personal innovativeness, perceived accuracy engagement and performance expectancy are significant positive predictors of consumers’ continuance usage intention. The results further highlight the important mediating effects of engagement. In addition, the research confirmed the moderating role of the perception of privacy risks. This research contributes to the existing literature of service robots by revealing the factors influencing the continuance usage intention of AI-enabled services. In addition, the study presents insightful managerial implications, suggesting that, manufacturers and managers should focus on increasing consumer engagement with the AI services, while ensuring high information quality and monitoring the perceived privacy risks of the targeted audience.