How Brands Are Reinventing Loyalty for the AI Decision-Maker

The most consequential customer a brand will acquire in 2026 may never read a promotional email, react to a banner ad or feel the emotional pull of a well-crafted rewards tier.

It will be an artificial intelligence (AI) agent, querying product catalogs, comparing subscription value and executing purchases on behalf of a human who has already delegated the decision.

That structural shift is forcing brands across retail, payments, telecom and financial services to rethink what loyalty means when the customer is a machine. The response, increasingly, is to stop designing loyalty programs for human feelings and start engineering them for computational legibility, making brand value queryable, parseable and optimizable in real time.

PYMNTS Intelligence data underscores the urgency. More than 6 in 10 U.S. consumers used dedicated AI platforms including ChatGPT, Claude and Gemini in the past year, with power users increasingly replacing legacy shopping and financial behaviors rather than supplementing them. A separate PYMNTS Intelligence survey found that more than half of AI users would prefer to complete purchases inside a dedicated AI platform rather than being redirected to a merchant’s website, a preference that removes branded environments from the equation entirely.

For loyalty strategists, the math is uncomfortable. If discovery, comparison and conversion increasingly occur inside AI interfaces, then points systems, email cadences and static tier structures are invisible to the decision-maker that matters.

Making Loyalty Machine-Readable

Modern loyalty programs are abandoning static points and fixed tiers in favor of real-time, behavior-driven systems that react to what users do in the moment rather than past purchases.

In practice, that means brands are designing machine-readable rewards logic and dynamic value propositions that AI assistants can easily interpret and optimize.

Retailers and loyalty platforms are going further by integrating first-party data systems with AI analytics to deliver one-to-one personalization at scale.

U.K.-based SaaS company Eagle Eye, which works with major grocery, retail and hospitality brands, marketed its AIR platform as a real-time, cloud-based loyalty and promotions engine designed to unify customer data, digital offers and transactional systems in a single architecture. Through the platform, Eagle Eye enables brands to issue personalized promotions, digital coupons and loyalty rewards at the point of sale or within mobile apps.

Major consumer brands are experimenting directly with AI to personalize experiences that deepen loyalty. In the restaurant industry, for example, Dine Brands, the parent of Applebee’s and IHOP, is planning an AI-powered personalization engine that uses ordering history to recommend dishes and customized deals designed to boost loyalty and repeat visits.

A December study posted on Nature.com demonstrated that AI-driven churn prediction models applied to telecom subscriber data achieved accuracy rates above 95%, with usage patterns and customer service interaction frequency emerging as the strongest leading indicators. Telecom providers deploying these models are issuing automatic service credits, plan adjustments and personalized retention offers triggered by predictive signals.

Subscription businesses are deploying the same logic against churn prevention. Rather than waiting for a cancellation request, AI-driven retention systems now monitor behavioral signals declining usage frequency, reduced transaction velocity, cross-shopping behavior and deploy proactive interventions before an agent-assisted comparison triggers a switch.

Interoperable identity is emerging as its own competitive frontier. The Financial Times reported on how brands are investing in portable identity layers that allow agents to authenticate customers and retrieve entitlements across merchant surfaces. When loyalty becomes portable, the program account becomes the authentication handshake for agent-led shopping across the broader ecosystem, strengthening the brand’s position in every transaction the agent touches.

Embedded Finance and Performance-Tied Benefits

Financial services firms are pursuing a parallel strategy: embedding loyalty benefits directly into payment infrastructure so that an AI agent executing a transaction automatically captures and applies value without requiring a separate loyalty interaction. The model converts passive points accumulation into active, transactional incentives that surface at the moment of payment.

PayPal’s integration with Perplexity, announced in 2025, operationalizes this approach. By positioning PayPal as the embedded checkout layer inside an AI-native shopping interface, the company ensures its payment credentials and associated loyalty benefits are present in the agent-mediated transaction flow. The bet is that financial infrastructure with machine-accessible consumer data becomes the loyalty layer, even when branded loyalty programs are absent from the interface.