Brands Face Growing 'AI Tax' as Counterfeit Activity and Impersonations Threaten Revenue

New report from MarqVision reveals a divide in how brands protect revenue against AI-driven counterfeits

LOS ANGELES, Feb. 12, 2026 /PRNewswire/ -- MarqVision, the AI-powered managed service platform for brand control, today released its 2026 State of Brand Integrity Report, revealing a critical inflection point in how brands are approaching brand protection in the age of AI.

The report, based on 96 U.S.-based BTC companies with over $10M in annual revenue across fashion, electronics, health, beauty, and consumer goods, dives into staggering findings as companies navigate the new world of AI. As AI increasingly shapes how consumers discover products, brands are facing a growing "AI tax," the hidden cost brands pay when counterfeiters and impersonators exploit brands' marketing success. The counterfeit listings and fake websites can hijack viral moments and redirect sales, yet only half of the companies have shifted from traditional takedown metrics to revenue-focused brand protection.

The report finds that 85% of brands agree that enforcement should safeguard revenue, but many are still leaving growth, marketing investments, and customer loyalty exposed.

"As AI technology becomes more widespread, many brands are still stuck playing defense—spending more and reacting faster, without a clear view of what's actually working," said Mark Lee, CEO of MarqVision. "Teams are taking down listings and accounts, but rarely measuring the real impact on revenue, trust, or customer experience. Meanwhile, AI-powered counterfeits and impersonation keep moving faster, quietly eroding brand equity and sales while brands struggle to prove ROI."

Key Findings:

• AI is quietly reshaping brand risk: Nearly 9 in 10 brands face AI-accelerated threats, with 60% seeing AI-generated fake product listings and 48% encountering AI-generated fake websites.
• Viral hijacking happens almost instantly: Counterfeit activity spreads quickly, with 57% of brands spotting fakes within one week of a viral moment, and 24% seeing them within just 24–48 hours.
• Revenue impact is significant: 78% of brands estimate they lose 5% or more of annual revenue to counterfeits and impersonations combined, with 46% estimating losses of 10% or higher.
• Investment is on the rise: 82% of brands plan to increase brand protection investment over the next 12 months, reflecting a shift toward revenue-focused metrics.

The report findings highlight a fundamental shift. Enforcement is no longer just about takedowns or metrics; it's about protecting the growth engines of a business. As AI enables counterfeiters to move faster than ever, brands that rely only on volume-based enforcement risk leave revenue and customer trust exposed. Brand protection is becoming a real competitive advantage in a market where speed and authenticity drive consumer decisions.

Businesses that combine real-time monitoring, proactive enforcement, and data-driven insights can reduce exposure to AI-driven threats and safeguard customer loyalty. In a digital-first world, brands that act decisively are best positioned to protect both their revenue and their reputation over the long term. For more information on the report and MarqVision, visit the report download page.

About MarqVision

From counterfeits and pirated content to fraudulent sites and unauthorized sellers, MarqVision provides end-to-end brand control across 1,500+ platforms in 118+ countries. Our AI-powered managed service platform for brand control and intelligence enables rapid, scalable enforcement—so your team can move faster, protect revenue, and preserve brand equity across every digital touchpoint. Founded by Harvard Law graduates in 2020, MarqVision is backed by Peak XV (formerly Sequoia Capital India), HSG (formerly Sequoia Capital China), Salesforce Ventures, Altos Ventures, DST Global Partners, Y Combinator, Softbank and Atinum Investments. Recognized with an LVMH Innovation Award and the Inc 5000 Fastest Growing Companies award in 2025, MarqVision continues to push boundaries in brand control, ensuring that innovation, creativity, and trust remain safeguarded in a rapidly evolving digital world.

SOURCE MarqVision