Foreign language anxiety (FLA) has been a perennial concern in language learning, as foreign language (FL) learners often communicate feelings of anxiety, stress, or nervousness. This study explored the role of artificial intelligence (AI) applications in speaking practice for FLA management of 48 undergraduate participants in an EFL class in Egypt. An eight‐week, quasi‐experimental pretest–posttest design examined learner anxiety levels using a 33‐item FLA questionnaire. Their oral proficiency was assessed via roleplaying using an interaction‐enhanced public version of the IELTS speaking evaluation rubric. The results confirmed that FL learners experienced FLA pre‐ and post‐intervention. The identified anxiety levels played a facilitative role in FL learning with several ensuing gains. The use of conversationally enhanced AI chatbots in interactive activities slightly intensified learners' FLA, thus meriting further investigation of these objectives. Overall, subject to further development, AI chatbots are promising for significantly improving linguistic output gains; however, this study found that learners' speech‐related anxieties were not reduced following the interactions with the chatbots. It is concluded that FLA plays an underexplored facilitative role in sharpening learner cognitive faculties and linguistic capacities. Moreover, AI chatbots may be beneficial in advancing FL learning with significant potential in EFL contexts, facilitating improved interaction and oral communication. These findings support the integration of AI technologies as effective tools in FL education, providing flexible, interactive, and learner‐centred learning. This study is expected to be of considerable interest to FL educators and learners.