The reverse logistics arm of United Parcel Service of America, Inc. has revealed that approximately 10% of retail merchandise return and refund requests in the United States are tainted by fraud. Faced with this staggering $76.5 billion issue, the company is turning to artificial intelligence (AI) technology to assist retailers in curbing such fraudulent activities. Its subsidiary, Happy Returns, is presently conducting trials of an AI-driven tool called 'Return Insight' with several clients. This innovative tool is capable of identifying suspicious packages, scrutinizing their contents, forwarding them for manual inspection to confirm fraudulent behavior, and subsequently withholding refunds until verification is complete.
