Riskified (NYSE: RSKD) released a report titled "Rewriting the Rules on Returns", which reveals that nearly half of consumers now use generative AI tools to assist with return or refund claims. The study indicates a structural shift in post-purchase processes, with return abuse behaviors becoming increasingly normalized. Retailers are responding by tightening return policies and deploying advanced AI detection to distinguish between legitimate behavior and abuse patterns.

The Riskified-commissioned study, conducted by eTail Insights, surveyed 2,091 consumers across seven countries and included interviews with senior retail leaders. The research found that 50% of consumers use generative AI tools such as ChatGPT or Claude to draft return claims. Retail leaders noted that these AI-generated requests are often highly convincing, overwhelming manual review processes.

Consumer Attitudes and Behaviors

The report highlights a significant acceptance of strategic return behaviors among shoppers. Social media plays a key role in normalizing these practices, with more than half of consumers encountering return-related content online. Specific behaviors deemed acceptable by consumers include:

Overall, 85% of consumers accept at least one type of strategic or borderline return behavior, while only 15% prefer to adhere strictly to policies.

Retailer Response and Strategy

In response to rising abuse, merchants are implementing stricter controls. Common changes include narrowing return reason categories, shortening return windows, and offering store credit instead of refunds. Some retailers are introducing tailored approaches based on customer risk and behavior, though these are not yet consistently applied at scale.

Consumer sentiment regarding these changes is surprisingly supportive. The study found that 52% of consumers support stricter return policies, and more than 60% would adjust their behavior if they understood the true cost of returns. Additionally, 56% prefer personalized or tiered return policies over uniform approaches.

Impact on Retail Operations

A global luxury fashion brand utilizing Riskified’s AI-powered platform reported significant improvements in managing returns. The company experienced a 75% reduction in chargebacks and an increase in conversion rates from approximately 50% to 75–80%. Furthermore, chargebacks spurred by rejected returns decreased from roughly $1M annually to $150K–$200K.

"The democratization of generative AI has fundamentally changed the returns landscape," said Jeff Otto, Chief Marketing Officer at Riskified. "To protect margins without alienating top shoppers, retailers need the ability to provide differentiated return experiences, accurately and at scale."

The report findings point to a new phase of ecommerce returns shaped by AI-driven fraud detection, identity-based intelligence, and personalized policies. This shift reflects a growing gap between consumer expectations and merchant sustainability constraints.