Luxury brands fight counterfeiting with AI and computer vision

At a time when the line between authentic and fake is increasingly blurred, the luxury goods market is turning to a powerful ally: computer vision. With the global luxury goods market expected to reach $385 billion by 2025, according to a Bain & Company report, the need for advanced authentication methods has never been more critical in the fight against counterfeits. Enter the world of CV, a vertical within AI that is revolutionizing the shopping experience and saving brands billions of dollars.

For example, the luxury sneaker industry is at the forefront of this revolution, a market segment that has seen explosive growth. The sneaker resale market alone is expected to grow to $30 billion by 2030, according to Cowen Equity Research. But the sneaker market faces a major challenge, with the counterfeit sneaker market growing by an astonishing 1,200% from $46.1 billion in 2013 to nearly $600 billion by 2023, according to Run Repeat. Fakes have become so good that even the most seasoned sneaker enthusiasts can’t tell the difference. The line between authentic and fake is often thin, making CV technology’s role all the more crucial. Companies like GOAT Group and StockX, leaders in the global sneaker market, are getting into the game.

GOAT Group, known for its authentic sneakers and rigorous verification processes, and StockX, which recently raised multiple rounds of funding to expand its authentication centers around the world (which are still run by humans), could benefit greatly from AI and CV. As demand for rare and exclusive sneakers grows, both companies face an increasingly difficult challenge of ensuring the authenticity of their products.

Many startups, such as Alt Vault, an AI company specializing in computer vision-based counterfeit technology, are on the front lines of helping big brands maintain the integrity of their products and services. Alt Vault’s technology uses AI to analyze and authenticate luxury products. Its CV layer can integrate advanced authentication methods directly into its systems, helping to distinguish genuine products from counterfeits, ensuring buyers’ trust and sellers’ credibility.

Another market that is being affected by counterfeits is the luxury watch market. Counterfeits are now so real that they sometimes fool authorized dealers. With a market that Statista estimates will reach $9.3 billion by 2025, the need for reliable authenticity is paramount. Computer vision and AI-based algorithms can help by analyzing the details of a watch, from the dial to the movement, ensuring the authenticity of each watch. By analyzing the tiny details that often go unnoticed by the human eye, computer vision offers buyers and sellers a verifiable sign of trust.

In a market full of high-value transactions, AI isn’t just a benefit to the space — it’s becoming increasingly necessary as demand for luxury goods grows. Platforms like StockX, eBay, GOAT, and many others are constantly looking for new technologies to reduce costs and improve scalability, and with the recent advent of AI and CV sophistication, it’s now possible to process thousands of images per day, providing authentication results in real time. This streamlines the verification process and significantly reduces the chances of missing counterfeits.

The adoption of AI and CV by luxury brands can also open the door to an enhanced consumer experience. Features like virtual try-ons, personalized recommendations, and interactive 3D models are just the tip of the iceberg. These technologies have the potential to transform how consumers interact with luxury products, offering an immersive and reassuring shopping experience.

As the luxury goods market evolves, the role of technologies like computer vision and artificial intelligence is becoming increasingly integral. For luxury goods platforms, partnering with tech startups is not just a step toward innovation—it can be a path to future-proofing products and services to combat counterfeiting.