Budgets, Geopolitics and AI Are Shaping Corporate Incentives

 The new IRF Trends Report reveals challenges, changes for programs 2026. 

Lisa A. Grimaldiby Lisa A. Grimaldi
January 30, 2026

Rising costs, geopolitical uncertainty and the expanding role of AI were the top trends that affected corporate incentive programs in 2025. Those same issues will continue to shape rewards programs, according to the new Incentive Research Foundation’s2026 Trends Report. The findings of the study, based on The Incentive Travel Index — a study of 2,700 global incentive professions that was released last fall — aligns with the results of the November 2025 Northstar/Cvent Incentive PULSE Survey.

Among the other findings of the IRF report: 

  • Program elements are being trimmed. Rising costs and flat budgets are forcing incentive travel planners to reduce or eliminate program components. They are cutting back on gifting; choosing less-expensive, closer-to-home destinations; and trimming the length of the trips. 
  • Site selection is more complex. Geopolitical instability is complicating destination selection, slowing decisions and increasing the need for thorough risk assessment. Even with careful planning, sudden geopolitical or security disruptions are common, making scenario planning essential.
  • Industry partnerships are more essential than ever. In this complex environment, planners are relying on their external partner relationships with destination management companies, convention and visitor bureaus and tech providers for their expertise and access to unique destination experiences.
  • Gift cards are popular. Monetary gifts continue to be the most widely used rewards, due to their flexibility (ease of purchase and redemption) and practical value during times of economic uncertainty. Participants are increasingly using them for everyday needs or small indulgences. Dining gift cards are the most popular type of these rewards, followed by online‑only retailer cards.
  • Incentive professionals’ adoption of AI is nearly universal. In all areas of the incentive industry, AI adoption is extremely high, with 93 percent of respondents using ChapGPT. Other popular AI platforms are Microsoft Copilot and Canva Magic Studio. At the same time, these professionals are balancing their AI usage with personal interactions.