Unlike traditional automated devices or robots without AI, service robots equipped with AI present new and complex challenges for privacy protection. Customers may not fully understand the privacy risks of service robots equipped with AI. Service robots are changing business operations and customer experiences in the insurance industry. Service robots equipped with AI must be able to access user data to provide customized services, which can raise privacy concerns and ultimately customer behavior and interaction. Therefore, the present study was conducted to investigate the role of information transparency and privacy assurance on policyholders’ interaction with service robots. The research method used in this study was descriptive correlational and a standard questionnaire was used to measure the research variables. The questionnaire was distributed to 385 people from a sample of the statistical population, which is all customers of insurance companies in the city of Shiraz. To investigate the research hypotheses, the structural equation modeling and partial least squares (PLS) path analysis method were used with Smart-PLS software. The empirical results of the present study revealed that information transparency has a negative effect on behavioral intentions, a positive effect on situational awareness, and a significant positive effect on customer privacy concerns. The empirical results also confirmed that situational awareness has a positive effect on privacy concerns and behavioral intentions, and that privacy concerns negatively affect customer behavioral intentions. Finally, the results showed that privacy assurance moderates the effect of situational awareness on privacy concerns, so that when this assurance exists, the effect of situational awareness on privacy concerns is reduced.