Artificial intelligence is transforming online product discovery, but exaggerated expectations created by AI-powered shopping experiences could lead to more product returns, according to new research from the MACH Alliance.
The industry organisation surveyed 1,000 consumers to examine how AI influences purchasing decisions. Its findings suggest that retailers risk increasing AI-driven retail returns if their digital discovery tools are not supported by connected systems providing accurate product information.
The survey found that AI search influences 42% of shoppers’ digital spending, rising to 48% among Millennials. AI agents influence 41% of e-commerce purchases, while AI shapes 45% of spending through social commerce.
However, improved product discovery does not always translate into customer satisfaction. More than half of respondents (56%) said AI had inflated their expectations before checkout, while 60% believed it could create unrealistic impressions of a product’s appearance, fit or performance.
Nearly seven in ten consumers (68%) said overly polished AI-generated imagery often fails to represent products accurately. Another 60% reported that AI-generated styling and visualisations can make it harder to imagine how items will look in real life.
These mismatches could contribute to higher return rates. Around 45% of consumers said unrealistic expectations created through AI discovery would make them more likely to return a purchase. The figure rose to 53% among Gen Z respondents, while 51% said AI increased their likelihood of experiencing buyer’s remorse.
Connected Technology Key to Reducing Returns
Jason Cottrell, president of the MACH Alliance, said retailers must consider the potential consequences of AI-driven sales alongside its benefits.
“AI is already driving real gains in discovery, inspiration and conversion. Retailers also need to recognise it can come with an unintended consequence: returns,” said Jason Cottrell, president of the MACH Alliance. “When the product that arrives doesn’t live up to what AI promised, that sale quickly becomes a return.
“Good outcomes for customers and businesses don’t come from AI and agents working in isolation,” Cottrell continued. “Agents need to be grounded in accurate, real-time product information and connected to the wider commerce ecosystem, from inventory and availability to fulfilment and post-purchase. No single vendor or agent can solve for every part of that journey.
“Connected ecosystems are how retailers close the AI expectations gap. When agents, data and best-of-breed technologies work together, what shoppers see during discovery is much closer to what arrives at their door.”
The findings underline the importance of aligning AI-generated recommendations and product presentations with reliable product data. For retailers, addressing this gap could help improve customer trust, limit AI-driven retail returns and ensure that gains in online conversion translate into more satisfactory purchases.
