CONNECT WITH US
eCommerce

eCommerce

AI recommendations are leading to returns

Retail Dive – E-commerce logo

Published on

Add as a preferred source on Google
AI recommendations are leading to returns

The problem may not have to do with the technology itself, but rather the product description data, according to a new report.

Despite the promise of deeper personalization, AI agents aren’t yet able to bypass the thorny issue of returns. However, the reasons for the return of AI-recommended products differ from those in more traditional retail channels.

While incorrect size or fit is the most common factor leading to U.S. returns in general (42%), according to the survey, the most frequently cited problem with AI-recommended products is that the item doesn’t live up to its description. AI assistants may be doing a better job of finding the right fit, but they struggle with describing products accurately, and the culprit is most likely the information retailers are offering up to answer engines.

“Shoppers are taking AI’s advice faster than retailers are getting ready for it, and nearly half of them are sending something back,” Duncan Angove, CEO of Blue Yonder, said in a statement. “That’s not really an AI problem. It’s a data problem. An AI assistant is only as good as the product information it can find, and most product data was written for a search bar, not for a machine suggesting products for someone. When what arrives doesn’t match what the shopper expected, it goes back in the box.”

Consumers are increasingly turning to AI assistants, especially among younger generations . Nearly a third of teenagers said they trusted AI-generated product recommendations over a friend, according to a recent Mastercard survey.


Source link
Related Topics:eCommerce

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.