Returns & Refunds Management

Several global companies have demonstrated the value of AI in returns management. Nike’s AI tool, Nike Fit, uses computer vision and machine learning to scan a customer’s feet and recommend accurate shoe sizes, cutting sizing- related returns by up to 60%. Since size issues represent one-third of online footwear returns, the impact on logistics and profitability has been significant.

Beauty brand Estée Lauder reported a substantial lift in conversions after implementing Perfect Corp.’s AI-powered virtual try-on technology, which allows shoppers to visualize products before purchasing, reducing returns, and improving satisfaction. Fast-fashion retailer H&M deployed a fashion AI supply chain management system that analyzes both sales and return data to optimize inventory distribution across its more than 5,000 global stores.

AI fraud detection tools are also gaining traction beyond retail. Mastercard says its generative AI–based fraud detection system reduced false positives by up to 200% while increasing fraud-detection speed by 300%.