Corporate Governance and Banking Chatbot Service Quality in Tadawul-Listed Islamic Banks in Saudi Arabia

Abstract

Saudi Islamic banks listed on Tadawul are expanding artificial intelligence (AI)-enabled chatbot services, yet the governance-related conditions associated with perceived chatbot service quality remain underexplored. This paper examines the association between corporate and Shariah governance, measured through a disclosure-based Corporate Governance Index (CGI), Banking Chatbot Service Quality (BCSQ), and customer trust. A quantitative cross-sectional design was used with online survey responses from 420 retail and small and medium-sized enterprise customers who had recently used chatbot or AI-powered chat support in four full-fledged Tadawul-listed Islamic banks, matched with documentary coding of bank governance disclosures. Exploratory factor analysis supported a four-dimensional BCSQ structure comprising Efficiency and Problem Resolution, Security and Privacy Assurance, Empathy and Islamic Ethical Alignment, and Interface and Accessibility. Measurement diagnostics showed strong sampling adequacy (KMO = 0.921), acceptable reliability (alpha = 0.86-0.95), and a four-factor solution explaining 68.9% of total variance. Hierarchical regression indicated that CGI was positively associated with overall BCSQ (beta = 0.34, p < .001) and each service-quality dimension after controls. PROCESS Model 4 indicated a significant indirect association between CGI and customer trust through BCSQ, while the direct association remained significant. The study contributes by linking governance disclosure to customer-level evaluations of AI service quality in Saudi Islamic banking. Because the evidence is cross-sectional, the findings should be read as associations rather than proof of causal improvement.