The dual potential of AI in loyalty: revolutionizing programs from the inside out

The time for AI adoption is now, according to findings from EPAM and Antavo’s Global Customer Loyalty Report 2025. It’s not just improving customer engagement but streamlining operations too.  

Feb 25, 2025

Loyalty strategies have come a long way, as brands race to stay ahead of the curve. Today, the dual potential of AI is a game changer. It’s operational efficiency for businesses while delivering hyper-personalized experiences to consumers.  

We’ve already moved beyond the hype and into real world application – with tangible results. Our research found that 37.1% of loyalty program owners are already using some form of AI in their loyalty program. For brands that hesitate to adopt AI now and learn how to best use it, the risk of falling behind is very real.

Consumers are ready for AI-driven loyalty programs 

Nearly 40% of consumers say they’d be more likely to join a loyalty program if it included AI and, unsurprisingly, Gen-Z and Millennials make up over 50% of this number. The message here is strong: right out of the gate, introducing AI can immediately elevate your loyalty offering for consumers. 

So, how can AI have a positive impact on the consumer? The answer lies in hyper-personalized customer experiences. Today’s consumers expect their favorite brands to know them beyond the basics – to understand their likes, their dislikes and to even suggest things they didn’t even know they’d like. 
 
For loyalty programs, this means using AI-powered tools to analyse zero-party and first-party data to create bespoke offers and rewards, making every interaction meaningful. 

For example:

• Flexible, personalized rewards: AI recommends tailored rewards based on customer behavior, such as offering a beauty enthusiast discounts on makeup or early access to a beauty influencer’s latest launch. 

• Personalized gamification: When AI meets gamification it can revolutionize customer engagement. Rewards, badges or challenges can be tailored to each customer's behavior patterns making the experience feel uniquely theirs.  

Work smarter, not harder with Agentic AI 

AI doesn’t just improve customer-facing aspects of loyalty programs. It can revolutionize internal operations too.  
 
Loyalty managers want AI to make things faster, cheaper, and more effective. 
Of the brands already using AI within their loyalty program, 44.9% say AI enhances team productivity by saving time, and 31.1% that it helps save money through increased efficiency. 
 
The next frontier of efficiency and AI within loyalty programs is predicted to be agentic AI, your digital colleague, performing tasks like an agent. Nearly 7 out of 10 program owners and agencies feel comfortable with this shift Here’s how it could work in loyalty programs : 

• Reporting on program performance: An AI assistant identifying problems within your program and finding solutions to help supercharge your next loyalty campaigns 
• Loyalty program scoping: Helping you turn your loyalty program strategy into a feasible scope, fueled by the latest trends in the market 
• Customer support: Acting as your personal assistant to help a customer with an issue or request, agentic AI could pull up members’ personal history without you having to dig through hordes of messy data 

70% of loyalty program owners say they feel confident using Agentic AI, proving the industry is ready for this transformation. Early adopters will gain a competitive advantage, turning loyalty programs into dynamic, responsive ecosystems that drive engagement and long-term success 

Embracing AI is no longer optional 

Your brand needs a clear point of view. Ask yourself about each AI trend and whether your response is to defend, differentiate, or disrupt. Do you need to adopt new features to defend against competitors who will? Do you have the opportunity to create superior value that will disrupt the loyalty landscape? 

For brands ready to adopt AI to elevate their loyalty offerings, they must consider 3 key steps: 

• Invest in scalable loyalty platforms: Choose technologies that can grow with your company and provide you with all the features necessary for your roadmap. 
• Educate stakeholders internally: Build trust in the potential of AI and what it can do to enhance both customer satisfaction and operational efficiency. 
• Collaborate with expert partners: Make sure your technology partner can implement AI effectively to maximize impact both internally and externally 

Master these key considerations and secure your brand a winning place in the new era of loyalty.

EPAM partnered with Antavo on their Global Customer Loyalty Report 2025. The report includes results from a survey of 10,000 global consumers, input from 2,600 loyalty business stakeholders, and analysis of 230 million loyalty program member interactions.