Tesco is feeding Clubcard data to AI. Are shoppers on board?

Last week, Tesco announced plans to use Clubcard data to nudge customers toward healthier and smarter financial choices.

This could be a game-changer, but it does bring up big questions around privacy and how people’s data is being used. The majority have signed up for loyalty schemes like Clubcard, knowing shopping habits would be tracked in exchange for discounts and rewards – but did anyone expect that artificial intelligence might one day analyse that data, and use it to influence what and how we buy?

While many people are OK with their data being used to offer personalised deals or recommendations, using AI to push customers toward specific choices feels like a step too far – one that many may not have agreed to.

When you signed up for a loyalty program, were you told AI would be making decisions about your habits? Probably not. And that raises a key issue: are retailers being transparent enough about how our data is being used today, compared to when we first handed it over?

A similar debate is being played out right now with LinkedIn in the UK. The social media platform recently started auto-opting some of its users into allowing their posts and interactions to be used for training its AI models.

This behind-the-scenes data usage is becoming more common, but it’s sparking concerns about whether users are being given a choice. Similarly, with Tesco’s Clubcard, it raises the question of people’s awareness of the terms and conditions they’ve agreed to, and the transparency and control over how their data is being collected and used, especially when AI is involved.

Simultaneously, this is a huge opportunity for Tesco and other brands. If companies can solve how to connect data across different loyalty programs, they can create better customer experiences.

Read more on AI tech:

• P&G taps AI to find cold water cleaning enzymes

• How generative AI is creating real value in grocery

• Sainsbury’s adding AI to checkouts as part of ‘next generation’ till upgrade

• How to see the greatest returns from Gen-AI tech

Currently, loyalty schemes often exist in silos, meaning the data doesn’t flow between brands to give customers a seamless experience. Imagine if your shopping, dining, and travel data worked together to offer smarter rewards and services that really improved your day-to-day life. That’s the potential, but it needs industry-wide collaboration to make it happen.

What we need to see is more standardisation in how data is collected and used. This would give consumers more control and clarity over how their data is shared, while allowing brands to innovate and improve the customer journey in meaningful ways.

Ultimately, Tesco’s move to use Clubcard data for healthier choices shines a light on a bigger conversation we need to have about privacy and data use. It’s a step toward smarter retail, but we need to make sure it’s done in a way that protects customers and builds trust. After all, a great customer experience should always start with transparency and respect for the people providing the data.