Retail executives say gen AI will weaken brand loyalty

Key stat: 44% of retail executives worldwide expect gen AI to weaken brand loyalty by shifting consumer choice toward value and fit over brand recognition by 2026, according to a January report from Deloitte.

Beyond the chart:

  • The loyalty gap is already visible in how AI handles customer relationships. Some 88% of US adults said AI-powered customer service resolved their issue, but only 22% said the experience made them prefer that brand, according to Gladly's 2026 Customer Expectations Report.
  • Meanwhile, the shoppers most likely to switch brands are already routing decisions through AI. One in 3 Gen Zers and 1 in 4 millennials prefer gen AI over search, social media, or influencers when deciding what to buy, according to a Future Commerce survey of consumers in the US, UK, Australia, and New Zealand.

Use this chart: Drop this in your next brand strategy or planning meeting to put AI's threat to loyalty on the agenda. Show leadership how quickly retail executives expect the shift to arrive, and use the scenario breakdown to benchmark which AI disruptions your brand should prioritize heading into 2027.

Related reports:

Methodology: Data is from the January 2026 Deloitte report titled, "2026 Retail Industry Outlook Survey." 330 retail executives worldwide were surveyed online during October 13-November 19, 2025. 86% were employed at retailers generating at least US$1 billion in annual revenue and 41% at companies with annual revenues of US$10 billion or more.

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Retail executives say gen AI will weaken brand loyalty