Loyalty in the Age of Agents: Can Algorithms Be Loyal?
Abstract
Customer loyalty has been a cornerstone of marketing strategy for decades, built on consumer psychology, rewards programs, and emotional brand connections. However, the emergence of Al agents that execute purchasing decisions autonomously challenges fundamental assumptions underlying traditional loyalty frameworks. This paper examines whether algorithmic systems can exhibit loyalty and how this transforms loyalty strategy in Al-mediated commerce. We introduce the concept of "algorithmic loyalty" - a functional rather than emotional state where Al agents demonstrate persistent preference for brands that consistently optimize their multi-variable decision criteria. Through synthesis of loyalty theory, Al decision-making research, and platform economics, we develop a four-pillar framework for algorithmic loyalty comprising: verifiable value consistency, supply reliability, systemic interoperability, and machine-readable trust signals. Our analysis reveals that loyalty is not disappearing but transforming from psychological attachment to functional optimization. This research contributes to understanding how established marketing concepts must evolve for Al-mediated environments and provides strategic guidance for organizations navigating this transition.