# Here's how AI will help retailers brace for $850 million in returns

Dec 26

Written By [Matthew Prewitt](/content/press-feed?author=5e8cf7a9f1f6d51956e06184/index.html)

Original article published [here](https://www.forbes.com/sites/shelleykohan/2025/12/26/here-is-how-ai-will-help-retailers-brace-for-850-million-in-returns/).

## Summary

AI is becoming a crucial tool for retailers coping with the increasing volume of returns during holiday seasons. With predictions of up to $850 million in returns, retailers are looking for innovative methods to manage this issue efficiently and cost-effectively.

1. **Understanding Customer Behavior:** AI can analyze purchasing behavior to predict which items are likely to be returned based on trends.
2. **Streamlining Return Processes:** Enhancing the return process through automated systems can reduce processing times and costs.
3. **Fraud Detection:** AI technologies help identify fraudulent returns, saving retailers from significant losses.
4. **Customer Service Improvements:** AI-driven chatbots can assist customers with their return inquiries, providing quicker resolutions and improving satisfaction.
5. **Operational Efficiency:** Integrating AI into supply chains can optimize inventory management and reduce return-related inefficiencies.

These advancements may substantially lower the burden of returns on the retail industry and enhance customer satisfaction.