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AI Against Counterfeits: How Smart Technology Is Reshaping Brand Protection and Platform Accountability
Last year, a luxury handbag maker discovered something troubling: its latest multi-thousand dollar design was being sold on an online marketplace for $89, complete with what appeared to be their official product photos. Within hours of the listing going live, dozens of orders began pouring in. This scenario plays out thousands of times daily across digital marketplaces worldwide, but increasingly, artificial intelligence is coming to the aid and giving brands new options to prevent and address this kind of infringement.
The global counterfeit trade has exploded to roughly $500 billion annually — a figure that would make it the world's tenth-largest economy if counterfeiting were a country. Digital platforms have inadvertently become the perfect storm for counterfeiters: massive scale, anonymous sellers, and limited oversight create an environment where knockoffs can flourish faster than authentic products can be protected.
At the same time, as AI becomes more sophisticated at detecting fakes, it is not just changing how brands protect themselves — it has the potential to change the legal framework for determining when platforms themselves might be held responsible for the counterfeits sold on their sites.
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