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Can artificial intelligence solve the online counterfeiting conundrum? Joanna Goodman investigates.
Private companies and public entities are using AI to identify counterfeits more quickly than humans can, and, given the increased volume of counterfeit goods traded online, this is increasingly being seen as a promising tool to fight fraudsters.
According to Organisation for Economic Co-Operation and Development (France) data, the total value of counterfeit and pirated goods is projected at close to $3 trillion worldwide in 2022. Also, e-commerce grew from 10% of retail sales to more than 30% during the COVID-19 pandemic, boosting the ability of those producing and selling counterfeit goods to reach consumers.
This is a threat to brands in two ways: If consumers buy inferior-quality fake goods assuming that they are genuine, the original brand risks a decline in brand loyalty. If the fake goods are close copies of original branded goods, but sufficiently discounted for customers to realise they are purchasing a replica—again the original brand may lose customers.
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Artificial Intelligence, anticounterfeiting, e-commerce, pandemic, brands, Alibaba, AACA, technology, Clarivate, designs, trademarks