Group 1 - The rapid rise of AI has led to significant misuse, with individuals exploiting AI-generated content for fraudulent refunds and misleading representations in e-commerce [1][3][22] - Merchants are facing increased refund requests, with some reporting a 20-30% rise in refund claims compared to the previous year, largely due to customers using AI to fabricate product defects [4][5][21] - The fashion industry is particularly affected, as AI-generated images are replacing traditional product photography, leading to a loss of authenticity and increased operational challenges for small businesses [16][17][19] Group 2 - The phenomenon of AI-generated content has blurred the lines between reality and illusion, making it difficult for consumers to distinguish between genuine and fake products [15][29] - E-commerce platforms are attempting to combat the misuse of AI-generated images by implementing stricter regulations, but enforcement remains challenging and relies heavily on user compliance [29][31] - The ongoing struggle between merchants and consumers over AI-generated refund claims has created a tense environment, with some merchants contemplating closing their businesses due to the overwhelming challenges [21][31]