White Paper

The AI revolution in loyalty programs and promotions

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Talon.One and Bloomreach’s Smarter Rewards helps businesses understand how AI is reshaping loyalty programs, promotions, incentives, and customer personalization. The guide explains the difference between predictive AI and generative AI, how brands are using AI to personalize rewards, reduce churn, automate campaigns, and improve omnichannel engagement. It helps businesses explore practical AI use cases while managing cost, accuracy, governance, and implementation risks.

AI is becoming a major driver of loyalty and promotion strategy, but businesses need to apply it carefully. The report highlights that 65% of retailers already use AI to tailor customer experiences, while 30% are exploring future AI personalization initiatives. It also notes that 90% of commercial leaders expect to use GenAI often within the next two years, showing why AI-powered incentives are moving from experiment to business priority. This whitepaper gives brands practical use cases and key questions to assess whether AI is the right fit for their loyalty strategy.