A skeptical and independent analysis of AI-generated predictions for the future of cobrand programs.
Artificial Intelligence – will it have a net positive or negative impact on the human experience? I think we’ve all experienced a tinge of fear when that question is asked. Given the deluge of commentary and headlines reinforcing both sides of the question, it’s impossible to avoid. One day an IT company fires half its staff, the next we’ve cured an intractable disease. I won’t wager a guess on the ultimate end-state between AI and humanity – symbiotic or parasitic – but I do enjoy testing the accuracy of answer engines when it comes to topics about which I have legitimate interests.
While most answer engines are amazingly accurate and far more right than wrong, I’m still not sure they can predict the future. I recently asked Copilot about the future of retail cobrand programs. As expected, the answer was exceedingly detailed and replete with the most up-to-date industry talking points – no doubt compiled using white papers and commentary from the most prominent insiders in the business. That point notwithstanding, I thought it’d be interesting to take a deeper look at the response Copilot provided and apply a dose of skepticism. What if the perspective of industry thought-leaders, especially when aggregated and sterilized of nuance, is more a reflection of conventional wisdom and inertia than true market demand? Do most customers want more personalized rewards, or is this the result of loyalty program providers and data aggregators trying to sell more capabilities? Will BNPL continue to be a preferred credit option among young people or will they “graduate” to more traditional credit cards as their finances mature?
Below is a brief analysis, and one-person’s perspective, on the answer I recently received to the question, “what is the future of cobrand retail credit card programs”. To be clear – I fully recognize the complete an utter knowledge inferiority of my perspective versus that of a LLM, but in any case, it’s never a bad idea to embrace credible challenge and apply a layer of independent questioning. AI may be the greatest technological innovation in human history, but it still might fall short of a crystal ball.