Gen Z shoppers are ditching brands over opaque AI use

The 2026 Customer Loyalty Index highlights a stark divide between enthusiasm and trust. In the UK, nearly half of Gen Z consumers have purchased items recommended by AI, and over a third are willing to let automated assistants handle their transactions. Despite this reliance, the honeymoon phase is fragile. Loyalty is no longer guaranteed by innovation; instead, it is conditional upon transparency and human oversight.

Sara Richter, CMO at SAP Engagement Cloud, notes that high adoption rates do not equate to high tolerance. When brands mask their AI processes or fail to provide human support, they risk alienating these users immediately. To retain this generation, retailers must balance personalized AI-driven experiences with clear data security assurances and a commitment to keeping human interaction available when the technology fails to meet expectations.