Adaptive Checkout Uses AI to Boost Conversion Rates

Fraud and crime are realities of the MULO (multi-location) ecosystem. Brands used to just have to worry about the checkout stage with shoplifting, dishonest employees, and fake IDs and credit cards. Now that we’re living in a phygital world (one that combines brick-and-mortar and online sales), thieves, fraudsters, and AI-powered bots have become more sophisticated. For example,

• Fraudulent returns alone cost retailers a whopping $103B annually.
• Hacker attacks occur every 39 seconds.
• By 2027, online fraud is expected to result in $343B in losses

As a result, brands have tightened their procedures. And this extra level of security can ultimately keep criminals away. However, it can also cut into profits by declining legitimate online transactions.

Riskified, a company that deals with MULO retailers like Finish Line, Canada Goose, Prada, BlueMercury, and Aldo, unveiled a new AI-powered adaptive checkout system that maximizes e-commerce conversion rates. Called Adaptive Checkout, it uses AI to reduce the number of false payment declines, in effect separating the “good guys (and women)” from the cyber criminals. Riskified is a leader in e-commerce fraud and risk intelligence.

Says Riskified,

“Traditional fraud prevention systems rely on nested rules resulting in binary approve/decline decisions, which can lead to false declines, insulted customers and lost sales. Riskified’s Adaptive Checkout shifts away from this traditional model by intelligently adapting each checkout journey based on an order’s unique risk profile, the identity’s shopping history, and hundreds of millions of data touchpoints from Riskified’s global merchant network.

AI-powered, Adaptive Checkout customizes the checkout flow for each transaction, surgically applying additional security measures for select higher-risk orders, enabling merchants to confidently approve more genuine orders while blocking fraud at various stages of the process.”

Adds Eido Gal, CEO and co-founder of Riskified:

“As fraudsters grow more sophisticated, e-commerce merchants risk losing legitimate customers through false declines, which can directly impact their revenue. Merchants raised this critical challenge with us, leading to our development of Adaptive Checkout.”

TickPick, an online ticket company, approved as much as $3 million in incremental revenue using Adaptive Checkout.

Thieves and cybercriminals are here to stay and are becoming more sophisticated. However, companies like Riskified are committed to staying one step ahead of them and utilizing AI and behavior data to separate real shoppers from evil-doers.

Although not easy to quantify, consumer perception and brand loyalty can also improve when people are treated as valued shoppers and spenders rather than sketchy scammers.

For more innovations in the MULO world (tech-based and otherwise), join us this September at Street Fight LIVE 2025!