AI is affecting brand loyalty – here’s how
Artificial intelligence is having a significant impact on how consumers communicate with and view brands.
More than half (56%) of U.S. and U.K. consumers now feel comfortable with AI filtering their brand communications entirely. “The Preference Economy: Earn True Loyalty or Get Filtered Out,” a new survey of 3,000 U.S. and U.K. consumers from business agency Gale, also finds that nearly one in three respondents have begun using ChatGPT, Gemini, Copilot, and other AI engines to prioritize certain brands above others.
In addition, 24% of respondents plan to regularly set AI brand preferences within the next year while another 21% are slated to follow within a few years. Combined with a 30% "maybe" cohort, Gale advises the realistic addressable market for AI-native loyalty will be above 70% of consumers within three years.
Meanwhile, nearly 25% of respondents were completely comfortable with AI learning their preferences, compared to 20% comfort level for cookies and 17% for social media.
Other findings
- More than half of respondents want faster and easier ways to redeem rewards, while 40% want offers that are personalized to what they actually buy.
- More than one-in-10 (12%) respondents will stay with a particular brand simply because switching is hard.
- Half of respondents have already switched or seriously considered switching brands for a better experience.
“We’re seeing a big shift in the loyalty landscape, and yet some brands continue to think of it as a one-off program rather than a holistic strategy,” said Gale CEO Andrew Noel. “Chief marketing officers need to consider how to build loyalty in this new era, through multiple touch points, or risk falling behind.”
A recent survey from Horizon Media shows that consumers are continuing to utilize AI tools to help them shop – but a handful of hangups still remain. Despite the growing use of AI shopping agents, only 27% of respondents believe they actually work for them. And while 70% of respondents are comfortable using AI for deal-hunting, only 33% are comfortable allowing AI to complete a purchase on their behalf.
[READ MORE: Survey: Some skepticism remains among AI shopping agent users]
