From Boll & Branch to Bogg, brands battle a surge of AI-driven return fraud

This story was originally published on sister site, Modern Retail.

A couple of weeks ago, Scott Tannen, the CEO of home goods brand Boll & Branch, noticed something strange about a recent customer service ticket. A shopper claimed a set of sheets had arrived torn and submitted photos as proof. 

But almost immediately, Tannen sensed something was off. The rip didn’t resemble the way cotton actually frays, and one image even carried an artificial intelligence watermark. The “damage” appeared to have been generated by AI. 

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Agencies grapple with economics of a new marketing currency: the AI token

As marketing agencies embed generative AI applications into their work, they’re adapting their pricing models to account for the cost of AI tokens.

Generative AI prompts and responses don’t come for free. LLM developers like OpenAI use tokens as a means of metering AI compute; the text you type into a prompt and the output generated by a model are counted. The more tokens processed, the more compute is used and the higher the cost. And while the tokens themselves cost a fraction of a cent, they add up fast; a recent Coca-Cola ad campaign required 70,000 prompts and millions of tokens, according to its makers.

“There’s no one model that’s the one silver bullet … you have to use a lot of different models and all of those have different token economics,” explained Johnny Rohrbach, co-founder and director of partnerships and operations at Silverside AI, a production studio backed by the founders of indie agency Pereira O’Dell.

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