American Express Co (NYSE:AXP) is preparing for a new challenge as artificial intelligence makes it easier for consumers to optimize credit card rewards.

CEO Stephen Squeri acknowledged that AI could help cardholders extract more value from benefits, potentially forcing issuers to rethink how they manage perks, spending thresholds and loyalty economics.

AI Changes the Rewards Game

Speaking on the company's third-quarter earnings call, Squeri said consumers have always been able to optimize spending across cards, but AI could make that behavior more sophisticated.

"With AI, as it might allow people to game a little more, it also will allow us to manage it a little bit better as well by using AI tools to understand what people are doing," Squeri said.

The remarks came in response to KBW analyst Sanjay Sakhrani, who asked how AmEx would respond if consumers increasingly directed spending toward whichever card offered the highest rewards.

Squeri acknowledged that rewards optimization is already common. "We've got a lot of gaming today that goes on, and it's part of the overall mix," he said.

The emerging risk is that AI assistants could make it easier to compare benefits, identify lucrative offers and allocate purchases across multiple cards. For issuers, that could complicate the economics of rewards programs if customers become more effective at using benefits without generating corresponding incremental spending.

AmEx did not quantify the potential financial impact of AI-driven rewards optimization.

Why AmEx Thinks It Has an Edge

Squeri argued that AmEx's business model extends beyond points and cash-equivalent rewards. The company competes through access, service, security and its relationships with both cardholders and merchants.

"Our overall model is so much more than just about points," he said.

AmEx also has ways to limit the cost of benefits. Squeri pointed to spending thresholds on the Platinum Card, saying the company can require customers to reach certain levels of spending before qualifying for specific benefits, reducing opportunities to game the system.

AI could give the company another way to identify behavior patterns and adjust its offers. However, Squeri cautioned that the situation is still developing, leaving the eventual impact on card member services expenses uncertain.

The Stakes for Investors

The issue matters because AmEx's premium-card strategy relies on making membership attractive while maintaining profitable customer relationships. In the third quarter, net card fees grew 17% on a foreign-exchange-adjusted basis, supported by the U.S. Platinum refresh, while U.S. consumer spending increased 9.4% year-over-year.

Those figures do not establish that AI is affecting rewards costs today. Instead, they show why managing the balance between generous benefits, customer engagement and profitability matters as AI changes consumer behavior.

For investors, the key question is whether AmEx can use AI to personalize benefits and deepen loyalty without allowing rewards optimization to erode program economics. The same technology that helps customers maximize value could help issuers respond — but the financial outcome remains an open question.