AI drives shift in consumer loyalty, favoring trust over discounts

SAP’s 2026 Consumer Loyalty Index found that artificial intelligence is playing a larger role in guiding buying decisions and helping consumers choose suppliers. True Loyalty, which is based on deep trust and attachment to a brand, recovered, rising from 29% to 32%. Conversely, Incentivised Loyalty, driven by discounts and rewards, fell ten percentage points to 38%, dropping below 40% for the first time in six years.

The research indicates that customers are increasingly prioritizing good experiences, brand trustworthiness, and feeling recognized as an individual over simple rewards. This suggests a shift in market dynamics where brand quality and relationship building are becoming more critical than promotional incentives.