AI loyalty shift threatens retailers' direct customer ties

Eagle Eye has published a report with Deloitte Digital and Google Cloud on how artificial intelligence is reshaping retail loyalty. The study focuses on the rise of agentic commerce as consumers increasingly use AI tools to shop.

It examines how retailers risk losing direct customer relationships if AI assistants become the main interface for product discovery and purchasing. It argues that loyalty schemes and retailer-owned customer data will become more important as shopping journeys move into conversational and automated channels.

Among the findings, 41% of consumers had used dedicated AI platforms for product discovery by January 2026, while 33% said those tools had fully replaced their previous methods. Amazon reported that 300 million customers used its Rufus AI shopping assistant in 2025, and those users were about 60% more likely to complete a purchase.

According to the study, tools such as Gemini and ChatGPT are already being used to build shopping lists, plan events and create baskets. That shift has raised questions for retailers over whether they can remain the main point of contact with shoppers or whether AI services will reduce them to fulfilment providers.

Personalisation pressure

The report identifies personalisation as one of the clearest ways for retailers to retain influence over the customer relationship. Retailers can use first-party and zero-party data gathered through loyalty schemes to tailor offers and experiences in ways general AI platforms cannot easily match on their own.

Eagle Eye's consumer research found that 84% of respondents believed personalised recommendations would help them save money at the shelf. It also found that 71% would consider buying a product, or would find it helpful, if they received an offer while shopping in store.

Younger shoppers appeared especially open to more interactive forms of loyalty engagement. The study found that 66% of consumers would take part in personalised games, contests or challenges through a loyalty programme, rising to 80% of millennials and 74% of Gen Z.

"Consumer expectations are rising faster than ever. As we all become more familiar with AI and enjoy its benefits in our daily lives, we expect retailers to offer the same benefits. Retailers need to create highly engaging and personalised conversational experiences to meet these expectations," said Mark Steel, Director of Global Retail and Consumer Industry Strategy, Google Cloud.

The study says retailers using data-led personalised loyalty campaigns have recorded an average 3.8% like-for-like sales uplift, including in price-sensitive markets. Yet it also points to a gap between ambition and delivery.

Research by Google Cloud and RGA, cited in the report, analysed 56 major retailers in Europe, the Middle East and Africa across 41 million data points. Only nine offered highly personalised search results based on an individual customer profile.

"The right AI tools can harness the data retailers already hold to deliver real-time individualised offers based on thousands of metrics," said Jean-Matthieu Schertzer, Chief AI Officer, Eagle Eye.

Loyalty as infrastructure

Deloitte Digital's contribution to the research argues that loyalty is becoming more than a marketing function. As privacy rules tighten and third-party data becomes harder to use, loyalty schemes are becoming a core source of customer insight and a way to identify customers across channels.

Deloitte Digital research cited in the study found that 68% of consumers said personalisation significantly increases brand satisfaction. It also found that businesses leading on personalisation are 48% more likely to exceed their revenue goals.

The report also highlights the commercial effects of stronger loyalty. Retailers reported basket sizes 16% larger among loyalty participants, alongside higher spending, lower churn and lower promotion costs.

Eagle Eye said its platform executes more than 1.7 billion personalised offers each week and manages more than 750 million loyalty member wallets worldwide. The report argues that those systems will need to respond instantly to remain relevant when purchasing decisions are routed through AI agents.

"If a retailer's platform lags during loyalty member ID verification, for example, an agent may default to a competitor whose API is faster. If loyalty can't respond in real time, it won't show up in an agent-driven decision," said Cedric Chereau, Managing Director, EagleAI.

Risk of commoditisation

A central warning in the report is that AI could strip away brand distinction if retailers fail to make loyalty visible and useful within agent-led shopping. In that environment, an AI assistant may simply choose the cheapest or fastest option unless it can recognise rewards, preferences or customer status tied to a particular retailer.

The study says 36% of customers fail to renew loyalty memberships because of a lack of engagement, while 31% do not renew because they see too little value. That leaves retailers exposed if they rely on outdated schemes as consumers shift towards AI-assisted shopping.

Examples in the report suggest some retailers are already adapting. Woolworths' Olive AI shopping assistant helps users plan meals, interpret handwritten recipes, apply loyalty discounts and add suggested products to online baskets. Loblaw has linked its eCommerce system with ChatGPT so shoppers can plan meals, generate ingredient lists and build baskets in the chatbot before checking out through Loblaw's app.

The report also links stronger customer loyalty to wider business performance. According to Deloitte Digital research, eight in 10 retail executives at outperforming companies said their customer loyalty was well above the industry average.

"Retailers have cited personalization as their #1 priority in their customer strategy but have struggled to achieve it due to the scale of channels, decisioning, offers and content. AI and Agentic capabilities mean we are closer more than ever to achieving dynamic and contextual experiences," said Gill Simpson, Partner, Deloitte Digital.