Artificial intelligence (AI) agents and the future of customer loyalty

Purpose Customer loyalty in the hospitality sector represents a critical determinant of a business’s success and competitive advantage. This paper aims to review the conceptual foundations of customer loyalty, its significance and the strategic mechanisms through which it can be cultivated and measured. Specifically, going beyond traditional strategies, this paper attempts to explain the concept of customer loyalty in the era of new technologies, especially AI agents, underscore its criticality and outline effective strategies for its enhancement and retention. Design/methodology/approach This paper synthesizes existing customer loyalty literature and proposes a framework based on insights from business, psychology and computer science to help companies and policymakers anticipate the impact of artificial intelligence (AI) agents on customer loyalty and guide future research directions in this emerging domain. Findings Building on prior literature and key developments in the last decade, this paper advocates for embedding retention-centric loyalty strategies while incorporating the newest technology. A proposed framework highlights the strategic alignment of AI capabilities, specifically AI agents, with loyalty objectives, emphasizing the critical role of data-driven personalization in sustaining competitive advantage and deepening customer relationships. Research limitations/implications The findings are primarily derived from secondary data sources and theoretical models, suggesting a need for empirical testing in diverse hospitality settings. Future research could explore the impact of AI and AI agents on loyalty across different cultures and market segments. Practical implications Hospitality firms may need to adapt loyalty strategies to account for AI-mediated decision-making. This includes enhancing algorithmic visibility, reconfiguring loyalty programs to engage both customers and their digital agents and understanding how AI shapes perceptions of value, convenience and brand preference. Firms must consider whether loyalty is being directed toward the brand, the agent or the ecosystem in which both operate. Social implications The integration of AI agents into loyalty ecosystems may have broader social consequences, including the erosion of consumer autonomy, increased algorithmic bias and new forms of digital exclusion. These transformations raise questions about the ethics of automated loyalty systems, the transparency of decision delegation and the future role of human connection in service interactions. Originality/value This paper fills a gap in existing research by examining the integration of AI with customer loyalty strategies within the hospitality industry. It offers a new perspective on how AI and AI agents can be aligned with traditional loyalty frameworks to enhance customer engagement and relationship management. The insights presented contribute to a deeper understanding of the practical implications of AI in shaping future loyalty programs and provide a foundation for further academic exploration and practical application in the field.