American Express CEO Stephen Squeri is implementing a suite of initiatives to attract millennial and Gen Z customers through premium products and AI tools.
This shift marks a strategic pivot to secure the next generation of high-spending cardholders. By combining luxury status with modern technology, the company aims to maintain its competitive edge as spending habits evolve among younger demographics.
The strategy includes the introduction of premium high-fee cards designed for younger users, with some featuring an annual fee of $900 [1]. These offerings are paired with expanded merchant partnerships to increase the utility of the cards in daily life. The company now boasts a merchant network encompassing more than 170 million locations worldwide [2].
Beyond physical cards, Squeri is integrating AI-driven commerce tools into the user experience. This includes a focus on agentic commerce, which moves beyond traditional e-commerce by using AI to facilitate transactions. While these tools offer efficiency, the company said that agentic commerce carries more fraught risks than traditional digital shopping [3].
These efforts began intensifying in 2024 as the company sought to trounce competition in the youth market [4]. The approach relies on the premise that younger consumers are willing to pay for exclusivity and high-end rewards if the value proposition is clear. Squeri is leveraging the brand's existing reputation for prestige to transition these users from entry-level products to high-margin accounts.
To support this growth, American Express has also introduced new business cards and increased AI usage across its operations [2]. This digital transformation is intended to streamline how younger entrepreneurs and consumers interact with their finances, creating a seamless ecosystem between spending and management.
“Amex is leveraging luxury status with modern technology to secure the next generation of high-spending cardholders.”
The strategy represents a bet that Gen Z and millennials will maintain a preference for 'prestige' branding despite the rise of fintech disruptors. By pricing cards at a premium and integrating AI, American Express is attempting to lock in high-net-worth young users early in their earning years, effectively insulating its luxury market position against lower-fee competitors.
