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In an era where personalization is paramount, artificial intelligence is transforming the beauty industry by offering tailored skincare solutions that address individual needs with unprecedented precision. Gone are the days of one-size-fits-all beauty routines. AI-powered technologies are ushering in a new age of personalized skincare that promises to revolutionize how we care for our skin.

The Rise of AI-Powered Skin Analysis

Traditional skincare consultations often relied on visual assessments and questionnaires. Today, AI-powered tools can analyze skin conditions with remarkable accuracy using advanced computer vision and deep learning algorithms. These systems can:

Detect fine lines, wrinkles, and pores

Measure hydration levels

Identify acne patterns

Assess sun damage

Monitor changes in skin conditions over time

Leading Brand Examples:

Neutrogena Skin360: Launched an AI-powered skin analysis tool that uses your smartphone camera to assess skin needs and track changes over time.

L'Oréal's ModiFace: Acquired this AI company to provide virtual try-ons and skin analysis through AR technology.

Perfect Corp: Partners with brands like MAC and Estée Lauder to provide AI-powered skin diagnostics and makeup try-ons.

Data-Driven Product Recommendations

The true power of AI in skincare lies in its ability to process vast amounts of data to generate personalized product recommendations. By analyzing factors such as:

Skin type and concerns

Environmental conditions

Lifestyle factors

Product efficacy data

Customer feedback and reviews

Innovative Brand Applications:

Proven Skincare: Uses an AI engine called "The Skin Genome Project" to analyze over 20,000 ingredients, 100,000 products, and 25 million consumer reviews to create personalized formulations.

Function of Beauty: Employs AI to create custom hair and skincare formulations based on individual assessments.

Prose: Utilizes AI to analyze over 85 factors before creating personalized hair care products.

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Getting Started with AI in Beauty
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The beauty industry's technological transformation is in full swing, with AI leading the charge in personalization and customer experience. While industry giants like L'Oréal and Neutrogena have made significant investments in AI, new brands can enter this space through strategic, measured approaches that don't require massive budgets or extensive technical expertise.

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For emerging brands, the most effective approach starts with basic AI implementations that can be accomplished within three to six months. Initial investments ranging from $5,000 to $15,000 can provide immediate value through features like virtual try-on capabilities, basic skin analysis tools, or AI-powered customer service chatbots. These foundational elements set the stage for more advanced features while providing immediate benefits to customers.

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One of the most cost-effective entry points is through partnerships with established technology providers. White-label solutions from companies like Perfect Corp or Revieve can provide sophisticated AI capabilities without extensive in-house development. These partnerships, combined with cloud infrastructure support, offer scalability and reliability from day one.

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Upcoming Technologies:

Revieve: Partners with global beauty retailers to provide AI-powered beauty advisors

HelloAva: AI chatbot that provides personalized skincare consultations

Skin Better: Uses AI to track skin changes and product efficacy over time

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Success in AI implementation requires methodical data collection and focused execution. Before implementing AI features, brands should establish systems for gathering customer data, including purchase patterns, product feedback, and skin concerns. This information becomes the foundation for personalization efforts and guides development decisions.

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Rather than implementing multiple AI features simultaneously, successful brands typically master one key area initially - whether that's skin analysis, product recommendations, or virtual try-ons. This focused approach allows for perfecting implementation and gathering valuable customer feedback before expansion.

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New brands often face challenges around budget constraints, technical expertise, and customer adoption. These can be addressed through strategic choices like:

- Using subscription-based services instead of building from scratch

- Partnering with established AI providers for technical expertise

- Investing in customer education and clear communication

- Starting with proven solutions before attempting cutting-edge features

Success Stories and Market Impact

Implemented AI-powered Color IQ system

Virtual Artist feature for makeup try-ons

Significant increase in customer engagement and sales conversion

Skin Advisor platform uses AI to analyze skin condition

Reported 90% accuracy in skin age prediction

Saw a 200% increase in conversion rates after implementing AI technology

Rouge Sur Mesure device uses AI to create custom lipstick shades

Combines real-time environmental data with personal preferences

Industry Impact and Market Growth

The integration of AI in the beauty industry has led to significant market changes:

Market Size: The AI in beauty market is expected to grow substantially over the next five years.

Consumer Adoption: Over 70% of beauty consumers express interest in AI-powered personalization.

Investment Trends: Major beauty conglomerates are increasingly investing in AI startups and technologies.

Conclusion

AI is not just changing the skincare industry, it's revolutionizing how we think about beauty and personal care. With major brands from Neutrogena to L'Oréal leading the charge, and innovative startups continuing to emerge, the future of AI-powered personalized beauty is incredibly promising. Brands that can successfully navigate this transformation while maintaining a strong focus on customer needs and ethical considerations will be well-positioned to lead the future of personalized beauty.

The success stories of companies like Proven Skincare, Function of Beauty, and Curology demonstrate that AI-driven personalization isn't just a trend - it's the future of the beauty industry. As technology continues to evolve, we can expect even more sophisticated and personalized beauty solutions that will transform how we approach skincare and cosmetics.

Remember, the goal isn't to implement AI for its own sake, but to create meaningful improvements in customer experience and product effectiveness. Brands that maintain this focus while following a measured, strategic approach are best positioned for success in this exciting and rapidly evolving space.

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Personalized Beauty Routines: How AI is Revolutionizing the Skincare Industry

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Subscribe to the Atomix Blog. Explore the power of AI in skincare as it creates personalized beauty routines, revolutionizing the industry with customized, data-driven products.

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Unveil Perso, The World's First AI-Powered Device For Skincare And Cosmetics

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A highlight of our presence at the CES 2020 tech show in Las Vegas was the launch of Perso, our new digital product.

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Future Of Skincare: How AI Skincare Is Transforming Formulation

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Discover how AI Skincare is revolutionising skincare formulation. Explore the future of skincare trends and innovations driven by artificial intelligence.

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“AI is helping to democratise dermatology — bringing expert-level skin analysis to anyone with a smartphone.”

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“AI is helping to democratise dermatology — bringing expert-level skin analysis to anyone with a smartphone.”

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— Euromonitor International, 2023, “AI in Beauty”

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4 ways I am using AI in my beauty routine... so cool!

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“Artificial intelligence enables a new era of hyper-personalisation, where products can be uniquely tailored to skin type, lifestyle, and environment in real time.”

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“Artificial intelligence enables a new era of hyper-personalisation, where products can be uniquely tailored to skin type, lifestyle, and environment in real time.”

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— McKinsey & Company, 2023, “The State of Fashion: Beauty Edition”

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“With AI, beauty becomes less about guesswork and more about precision — it’s skin science for everyone.”

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“With AI, beauty becomes less about guesswork and more about precision — it’s skin science for everyone.”

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— Stylus, 2023, “AI and the Evolution of Custom Skincare”

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Level up your skincare in 2025 with multitasking products and AI

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“AI has drastically reduced time-to-market for skincare products by simulating ingredient reactions across a range of skin types.”

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“AI has drastically reduced time-to-market for skincare products by simulating ingredient reactions across a range of skin types.”

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— Johnson, Dermatology Research Review, 2023

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AI Chatbots in Skincare: Revolutionizing Patient Care & Clinic Growth!

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How To Use AI to Find Your Skincare Business Niche

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“AI can help solve skin problems, but it can also create ethical ones. Accuracy, transparency, and inclusivity must be at the core of this evolution.”

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“AI can help solve skin problems, but it can also create ethical ones. Accuracy, transparency, and inclusivity must be at the core of this evolution.”

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— World Economic Forum, 2024, “Next Gen Consumer: Personalisation, Ethics and Wellness”

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AI-Powered Personalized Skincare? Meet Next-Gen Care Devices Fueled by Innovation [MBN News7]

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Advanced data sets, hyper-personalisation and remapped infrastructures will be what it takes for the industry to scale and embrace AI's future.

Welcome to Beauty Run by Robots, a Vogue Business mini-series exploring the role and effects artificial intelligence (AI) will have on the beauty industry.
Skincare brand SmartSkn's pop-up lab in Los Angeles now features artificial intelligence-driven skincare robots by Korean tech firm Lillycover, promising personalised skincare in three minutes. At the Consumer Electronics Show's 2025 tech showcase, agentic AI (a form of AI capable of independent action and learning) dazzled execs with its potential to reshape everything from robotic surgery to automated marketing analysis. I've gotten a 20-minute gel manicure from Umia's salon robot - a fraction of the usual time with results lasting two weeks.

It's clear that AI is coming for beauty. Yet, these innovations remain isolated flashes of the future rather than industry standard. Salon treatments still take hours, hyper-personalisation remains limited by mass-market formulations and retail layouts dictate shade range availability. Most brands rely on traditional ad campaigns rather than AI-driven, one-to-one customer interactions. AI bias remains a major industry concern - many models struggle to thoroughly analyse diverse skin tones, leading to flawed recommendations accurately.

But those that embrace AI early will be better positioned to lead. It also can pad out a brand's bottom line in the long run. Global management consultancy McKinsey reports personalisation can reduce acquisition costs by as much as 50 per cent, lift revenues by 5 to 15 per cent and increase marketing ROI by 10 to 30 per cent. Plus, companies with faster growth rates derive 40 per cent more of their revenues from personalisation than their slower-growing counterparts.

The key question: how does the industry move from A to Z, from promise to execution, ensuring the future flashes become real life? "The industry isn't ready yet," says Sampo Parkkinen, CEO of AI firm Revieve, thanks to existing bias and the many manufacturing and logistical challenges at play.

Still, progress is underway. Companies like Haut.AI are refining skin analysis with its system that runs 15 different skin models; in parallel to analysing various facial features combined in one report for greater skin-condition accuracy. L'Oréal has a dedicated generative AI committee, while Renude, an AI data science firm, is working on more inclusive data sets to help mitigate AI bias. But for AI to revolutionise beauty, scalable solutions must be in place.

All down to data

Artificial intelligence is only as good as the data it's trained on. Skin tone detection must be flawless before virtual mirrors, smart glasses and skin analysis tools hit the masses. However, gaps remain, especially in skin tone analysis, which pose a potential minefield. "There are a lot of companies in the space today doing virtual try-ons or skin analysis but many are regionally focused, which increases the risk of AI bias - brands need to watch out for this," says Parkkinen.

"AI bias skin tone analysis is largely due to imbalances in training data sets. Many AI models have been developed using data sets that skew towards lighter skin, which can lead to inaccuracy," says Majad Hussain, co-founder of AI-powered skincare brand MiQuest. It all starts with imaging. Dermatology reports from the National Institute of Health, Oxford Academic and the Journal of the American Academy of Dermatology, dating back to 2022, reveal that biases within data sets stem from the lack of medical images accurately representing darker skin tones with medical conditions.

"AI is built from data, so if there is bias in the data, this same bias will be built into the AI. It is up to the team building the AI model to consider the biases that exist in the real world and take action to mitigate them," says Renude co-founder Pippa Harman.

When building and scaling AI models, brands need to assess all skin types, which requires high-quality, varied data and skin expert assessments. It's an investment Renude doubled down on in its AI skin analysis designed to personalise skincare routines combining AI imaging, a custom quiz and product recommendations from licensed aestheticians for consumers and retailers (the firm licensed its services to French Pharmacy-owned beauty brand Laboratoire SVR in 2023) to carve out products better suited to their skin type, tone and possible conditions. The analysis tool was developed with Harley Street consultant dermatologist Dr Justine Kluk and trained on tens of thousands of images across a spectrum of tones and skin condition severity levels like eczema or scarring. Each image was labelled by type and skin tone by licensed doctors before feeding into the AI, ensuring precision.

Hussain urges brands to go beyond colour-based analysis. "Brightness and contrast alone don't work for darker skin tones. AI should analyse texture, shape and depth," he says. Explainable AI (a type of AI that can explain how it makes decisions), which shows how a model reaches conclusions, can help identify and correct biases. Advanced imaging technologies like vascularity detection, thermal mapping and depth sensing further refine accuracy by reducing reliance on brightness-based cues. Whereas L'Oréal's global director of beauty tech services Béatrice Dautzenberg, emphasises having a team that spans age and race as an important consideration for brands integrating advanced data sets into AI analysis tools. "Having a diverse team of humans coding AI's prompts is very important as we move forward."

Regular testing is non-negotiable. "Brands must continually evaluate AI models against diverse data sets and retrain them when discrepancies arise," Hussain says. Tools like IBM's AI Fairness 360 help track and mitigate bias, ensuring more equitable outcomes.

Moving marketing forward

Elsewhere, advancing models beyond data capture to help brands transition from general to personalised marketing campaigns - and at scale - will be required. Experts say this investment could advance campaigns beyond pocketed consumer segments to tailored ads. "Where I'm bullish on AI is enabling a feedback loop between brand and consumers. A conversational AI where consumers can interact with brands to act as a two-way communication channel," marketing firm Front Row's chief insights officer Mark Wieczorek says.

For Wieczorek, AI shouldn't be used throughout the entire marketing funnel to facilitate hyper-personalisation in ads because the overarching goal of delivering one message at the top of the funnel will become too complex and costly. Instead, Wieczorek advises brands to focus AI efforts on mid-to-lower funnel marketing, where consumer data is at its richest. "AI is most effective when fine-tuning messaging, timing and channel placement," he explains. Scaling AI-driven personalisation also requires infrastructure changes. "Brands need to blend data science with creative intuition and restructure teams accordingly," says Coralie Hampson, business director at Socially Powerful, a social marketing agency. Still, broad ad campaigns won't disappear. "They start the conversation," Wieczorek notes, "but AI refines it."

Yet, data privacy remains a challenge. "Consumer data should be treated as confidential, but AI tools often involve third-party developers and cross-border data storage," warns Mona Schroedel, AI and data protection lawyer at Freeths. She urges brands to scrutinise contracts and enforce strict data access and usage policies. Despite these hurdles, costs for AI adoption are expected to drop. "Soon, an AI-powered model could cost less than a website refresh," Wieczorek predicts, making advanced personalisation widely accessible.

Carving out customisation

Hyper-personalised beauty requires structural change. Some brands have tested using AI for tailored product formulations, such as SmartSkn's use of AI to customise skincare, or Dr Simon Ourian's employment of AI skin analysis with voice integration for an in-clinic experience and regimen recommendations. Function of Beauty creates bespoke haircare using a questionnaire algorithm, while dermatology-backed brands like Skin & Me and Dermatica combine an AI algorithm with expert oversight for prescription-based solutions.

Still, scaling customisation is complex if brands want to move away from products dictated by traditional groupings like 'sensitive skin', 'oily combination skin', or categories such as 'hydration' and 'brightening' and calibrate systems based on skin needs. AI-based questionnaires are a starting point, but brands will need to re-think their operational flows.

"AI-powered diagnostics, flexible manufacturing and smarter ingredients selection are key," says Hussain. Modular product systems, where ingredients are mixed based on AI assessments, could replace bulk production. Biometric data tracking could further refine AI-driven recommendations. But true personalisation demands cross-functional collaboration. "Tech, research and development, and customer experience teams must align. Personalisation can't be an afterthought," says Ruth De Leo, CEO of AI-powered cosmetics brand Dcypher.

Dcypher had to rebuild its entire infrastructure to scale customised formulations. "We had to build an entirely new infrastructure that could manufacture individualised formulas on demand, without generating excess waste or driving up costs. Balancing affordability, efficiency and true customisation was a challenge that traditional beauty brands don't have to navigate," De Leo says.

She also warns about costs from an AI investment perspective, as brands can't afford to cut corners with advanced technology. "Developing AI-driven skin-matching technology, ensuring our database was inclusive of all skin tones and building the right manufacturing processes required resources," she admits. But, the biggest challenge? Consumer education. "Shoppers are used to pre-made shades. We had to show why bespoke beauty is better and just as accessible."

While hyper-personalisation won't reconfigure beauty retail overnight, AI can enhance in-store experiences. First, "retailers can introduce AI-powered customisation on counters - think bespoke foundations or virtual try-on mirrors", says Harman. For her, multi-brand retailers Harrods and Selfridges are already revamping beauty halls to accommodate AI-driven services from brands like Prada and Lancôme, who offer skin analysis at the beauty counter. Next, Harman recommends buyers and merchandisers leverage AI listening tools to analyse consumer spending and footprint in-store. The move will better position retailers and brands to stock what drives footfall and sales - while maximising shelf space - to advance merchandising and a consumer's shopping experience overall.

To scale, the road ahead requires brands to rethink operations, navigate regulatory concerns and invest in AI's long-term integration, but the cost of sitting out could be greater. "We're on the cusp of a massive shift," says Hussain. "AI is the future of beauty - brands can't afford to be left behind."

Comments, questions or feedback? Email us at feedback@voguebusiness.com.

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Advanced data sets, hyper-personalisation and remapped infrastructures will be what it takes for the industry to scale and embrace AI's future.

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How beauty players can scale gen AI in 2025

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Beauty is no longer in the eye of the beholder. It’s at the fingertips of the gen AI prompter. We look at why scaling these experiments will be challenging.

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Advanced AI: The Next Frontier In Beauty Technology

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Let’s delve into the realm of generative AI and conversational AI, exploring their implications for the beauty industry.

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“We’re not just developing skincare; we’re developing systems that learn and adapt with the user.”

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“We’re not just developing skincare; we’re developing systems that learn and adapt with the user.”

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— Barbara Lavernos, Deputy CEO, L’Oréal Group (2023)

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Firework | From Formulations to Marketing: How Beauty Brands Are Using AI

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Explore how AI is reshaping the beauty industry, driving innovation from product development to marketing strategies, and delivering personalized experiences.

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Artificial intelligence is poised to transform the beauty industry, influencing product personalisation, consumer engagement and supply chain efficiencies. What will this mean for brands?

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Generative AI, a branch of artificial intelligence focused on creating new content, has profoundly influenced nearly every industry. One sector where it has made substantial progress is the beauty category. From customized skincare routines to innovative cosmetic formulations, generative AI is transforming how beauty products are developed, marketed, and used.

Innovations to Date

Generative AI has already brought several remarkable innovations to the beauty industry:

The Future of Beauty with AI

As AI continues to evolve, its impact on the beauty industry is expected to grow even further. Here are some predictions for the future:

1. Hyper-Personalization: The future of beauty lies in hyper-personalization. AI will enable brands to offer even more precise and individualized product recommendations. By analyzing genetic data, lifestyle factors, and real-time skin conditions, AI will create products that adapt to the user's needs over time. This level of customization will redefine consumer expectations and loyalty.

2. Augmented Reality (AR) and Virtual Reality (VR): The application of AR and VR in the beauty industry will keep growing. These technologies will provide immersive virtual shopping experiences, allowing customers to virtually visit stores, try on products, and receive personalized consultations from AI-powered virtual beauty advisors.

Generative AI has already introduced significant innovations to the beauty product category, ranging from personalized skincare to virtual try-ons and AI-driven formulations. As AI continues to advance, the future of beauty appears even more promising. Hyper-personalization, sustainability, smart beauty devices, AR/VR integration, and AI-enhanced marketing are just a few of the exciting developments on the horizon. The beauty industry is primed for a technological revolution, with AI at the forefront, driving innovation and transforming the way we experience beauty.

About the Author

Elenita (Elle) Morris is Chief Marketing Officer at Olberding Brand Family, stewards of consumer-packaged goods brands since 1919, partnering with brands on brand strategy and design, packaging, digital adaptation and pre-media and platemaking. She is a recognized consumer packaged goods brand design thought-leader with particular expertise in beauty, haircare and skincare. Follow Elle Morris on LinkedIn.

Photo: Kitreel and Ihor Bulyhin/Shutterstock.com

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AI Innovation in Beauty-and What the Future Looks Like

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How generative AI has brought -and will bring-'remarkable' innovations to the beauty industry.

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“From predictive demand forecasting to cruelty-free testing, AI is revolutionising not just products, but entire operations.”

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“From predictive demand forecasting to cruelty-free testing, AI is revolutionising not just products, but entire operations.”

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— WGSN, 2024, “Future of Refillable Beauty and AI-Enabled Waste Reduction”

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Let's take a closer look at how the beauty industry is starting to integrate AI across almost every aspect from formulation through to marketing and customer service.

Virtual try-ons

AI-powered virtual try-on tools let customers to see how different beauty products will look on them without physically trying them. This tech uses facial recognition and AR to show how products may look.

Formulation and development

I've seen mixed reviews on the use of AI in formulation, but algorithms are being used to formulate based on the huge amount of data on ingredients, trends and feedback.

Recommendations, analysis and diagnosis

AI algorithms analyse customer preferences, skin types, and other data to provide personalised product recommendations. It's also being used for advanced skin analysis, diagnosis and routine recommendations.

Generating imagery, video and sound

Whether it's packaging imagery, style transfer, editing or creating from scratch, AI tools are being used across the creative process to support marketing and creative campaigns.

Trends prediction

AI algorithms analyse social media, fashion shows,and other sources to predict upcoming beauty trends. This info can be valuable for companies to stay ahead when it comes to product development and marketing strategies.

Automated retail experiences

Some beauty retailers are using AI to enhance the in-store or online shopping experience. This includes AI-driven recommendations, interactive displays and smart mirrors that offer virtual beauty consultations.

Supply chain

AI is used in supply chain management to improve efficiency, reduce costs and enhance the overall production process. This can lead to a more sustainable and streamlined supply chain for beauty products.

Beauty devices

AI is being integrated into beauty devices such as facial recognition tools. These devices can analyse and recommend personalised skincare routines or treatments based on the individual's skin condition.

Chatbots and virtual assistants

AI-powered chatbots and virtual assistants are used to provide instant and personalised customer support. Customers can ask questions about products, get beauty tips and receive assistance in real-time.

Social and influencer campaigns

AI tools are used to analyse social media trends and identify potential influencers for beauty brands. There are also some brands working on virtual influencer campaigns, which are AI-driven.

Here's some links where you see some real-life examples and opinions of AI implementation in the beauty industry:

Read more: 6 Ways AI Tools Like ChatGPT Are Changing Consumer Beauty Routines

If you're looking for a writer to support your beauty brand, without the AI influence, get in touch.

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10 ways the beauty industry is using AI – Lucy Thorpe Content | Health & Beauty Writer

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Let’s take a closer look at how the beauty industry is starting to integrate AI across almost every aspect from formulation through to marketing and customer service.

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The Beauty Industry Has Reached Peak AI-Washing

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Artificial intelligence is the ultimate shiny object right now. But can it actually make a difference in your beauty routine?

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The beauty industry has always been at the forefront of innovation, constantly evolving to meet consumer expectations and technological advancements. In recent years, artificial intelligence (AI) has emerged as a game-changer, transforming everything from personalized skincare to virtual makeup try-ons. AI-powered tools are not just enhancing the way beauty brands operate; they are also redefining how consumers discover, experience, and purchase products.

One of the biggest shifts in the industry is the move toward smart, data-driven beauty experiences. With AI, brands can analyze skin conditions with pinpoint accuracy, recommend customized skincare routines, and even create makeup shades tailored to an individual's complexion. Virtual try-on solutions allow customers to test beauty products in real-time using their smartphones or computers, eliminating the guesswork when shopping online. This level of personalization was once impossible, but AI is making it an everyday reality.

Beyond consumer applications, AI is also revolutionizing the business side of the beauty industry. Retailers and brands are leveraging machine learning to optimize inventory management, enhance product quality control, and streamline manufacturing processes. AI-driven insights help companies understand emerging trends, predict demand, and ensure products meet the highest standards before they reach the shelves. With automated image recognition, companies can maintain consistent branding across all platforms, ensuring that product visuals are engaging, high-quality, and aligned with marketing strategies.

The demand for computer vision, machine learning, and automated image processing in beauty tech is skyrocketing. Brands are integrating AI-powered tools to remove backgrounds from product photos, recognize brand logos for authenticity verification, and automate tedious tasks like catalog categorization. Optical character recognition (OCR) is also playing a key role in scanning and analyzing product packaging, making it easier for companies to manage labeling, compliance, and ingredient transparency.

As we move further into 2025, AI's influence on the beauty industry will only continue to expand. Whether it's enhancing customer engagement, refining marketing strategies, or improving operational efficiency, intelligent beauty solutions are shaping a future where technology and self-care go hand in hand. The following trends highlight the most exciting ways AI is driving innovation in the beauty world and setting new standards for the industry.

Finding the perfect beauty product has always been a challenge. With countless skincare formulas, makeup shades, and hair care options available, many consumers struggle to choose the right items for their unique needs. In 2025, artificial intelligence is changing that by making beauty shopping more personal than ever. AI-powered recommendations are helping brands tailor product suggestions to each individual, ensuring that customers receive options that match their skin type, tone, and preferences with remarkable accuracy.

How AI Understands Individual Beauty Needs

AI-driven recommendation systems work by collecting and analyzing a variety of personal data. This includes skin type (oily, dry, combination), skin tone, concerns (acne, aging, hyperpigmentation), and past product preferences. Advanced machine learning models process this information and compare it with vast beauty databases to suggest products that align with the customer's specific characteristics.

For example, a user uploading a selfie to a beauty app can receive precise skin analysis through AI-powered face recognition. The system can detect fine lines, redness, or dark spots and recommend skincare treatments accordingly. AI can also factor in external conditions, such as weather and humidity, to suggest the most suitable moisturizer or sunscreen for different climates.

The Role of AI Technologies: Image Labeling, Face Recognition, and OCR

Several AI technologies work behind the scenes to create these hyper-personalized experiences:

Image Labeling: AI categorizes beauty products based on ingredients, usage, and suitability for different skin types. This allows recommendation engines to match products with customer preferences effectively.

Face Recognition: By analyzing facial features, AI can determine skin tone and facial structure to suggest the right foundation shade, contour products, or even glasses that complement the user's face shape.

Optical Character Recognition (OCR): This technology extracts information from product labels and ingredient lists. It ensures that recommendations align with a user's skincare needs, allergies, or lifestyle choices (such as vegan or cruelty-free beauty).

Together, these AI-powered tools create a highly accurate and efficient recommendation process, helping customers discover products that truly work for them.

How Personalization Strengthens Customer Loyalty

The modern consumer expects convenience, relevance, and efficiency when shopping for beauty products. AI-driven personalization not only meets these expectations but also significantly enhances customer satisfaction. When users receive recommendations that lead to better skincare results or perfectly matched makeup, they are more likely to trust the brand and make repeat purchases.

Moreover, personalized beauty experiences strengthen brand reputation. Companies that offer tailored recommendations stand out in a crowded market, positioning themselves as leaders in innovation and customer care. Personalized services also drive engagement - customers are more likely to interact with brands that provide meaningful, individualized experiences.

As AI continues to refine its understanding of beauty preferences, hyper-personalized recommendations will become a standard feature in skincare and cosmetics shopping. The brands that embrace this technology today will set themselves apart in the competitive beauty industry of tomorrow.

Trying out beauty products before purchasing has always been a key part of the shopping experience. However, in today's digital-first world, traditional in-store testing is becoming less common. Instead, artificial intelligence and augmented reality (AR) are making it possible to try on makeup, hairstyles, and even skincare products virtually - right from a smartphone or computer. Virtual try-on technology is reshaping the beauty industry, giving customers a seamless and highly interactive way to experiment with different looks before making a purchase.

How AI and AR Power Virtual Try-Ons

Virtual try-on technology relies on a combination of real-time facial recognition, AR filters, and AI-powered rendering to simulate how beauty products would appear on a person's face or hair. When a user opens a beauty app or an e-commerce website offering this feature, AI instantly detects facial features such as eyes, lips, and skin tone. The AR system then overlays realistic digital images of beauty products - such as lipstick, foundation, or eyeshadow - onto the user's face.

Unlike basic filters, modern AI-powered virtual try-ons adapt to different angles, lighting conditions, and facial movements, ensuring that the results look natural. Customers can see how a shade of lipstick complements their complexion or how a foundation blends with their skin, all without physically applying any product. The same technology is also being used for hairstyle and hair color simulations, helping users visualize different styles before committing to a change.

The Role of High-Quality Background Removal and Face Detection

To create a smooth and immersive virtual try-on experience, AI technologies such as background removal and face detection play a crucial role. These tools enhance the accuracy of AR overlays and improve the realism of the digital application.

Face Detection and Tracking: AI-powered face detection ensures that virtual makeup aligns perfectly with a user's facial features. Whether someone tilts their head or moves closer to the camera, the virtual product remains accurately placed, creating a natural and convincing look.

Background Removal for AR Experiences: Many virtual try-on applications automatically remove or blur the user's background to ensure a distraction-free experience. This prevents surrounding objects or poor lighting conditions from interfering with how a product appears on the face. Clean, well-detected facial boundaries allow for precise application of digital beauty products, making the experience feel more like looking in a real mirror.

These advancements help brands create more reliable and enjoyable virtual try-on solutions, leading to higher consumer confidence and fewer product returns.

The Growing Popularity of Virtual Try-Ons in Mobile Apps and E-Commerce

As online beauty shopping continues to grow, brands are rushing to integrate AI-powered virtual try-ons into their mobile apps and e-commerce platforms. Customers are no longer satisfied with static product images; they want to see how a product will look on them before making a purchase.

Many beauty retailers now offer AR-powered try-ons for lipsticks, eyeshadows, foundations, and even colored contact lenses, making it easier than ever to find the perfect shade. Haircare brands are also adopting similar technology to let customers test different hair colors and styles digitally.

Virtual try-on technology is especially valuable for e-commerce businesses, where customers cannot physically test products before buying. Studies show that interactive shopping experiences increase engagement, boost conversion rates, and reduce product returns - making AI-powered AR a smart investment for beauty brands.

As AI continues to advance, we can expect even more sophisticated and hyper-realistic virtual try-on experiences in the beauty industry. With AI-driven precision and AR-powered creativity, digital beauty testing is no longer a novelty - it's becoming an essential part of modern beauty shopping.

In the beauty industry, visual appeal is everything. Whether it's a skincare product, a lipstick shade, or a luxury perfume bottle, high-quality imagery plays a crucial role in attracting customers and influencing purchasing decisions. In 2025, AI-driven technologies are taking product presentations to the next level, helping brands create visually stunning content with greater efficiency and consistency. From background removal to object detection, AI-powered tools are reshaping how beauty brands showcase their products across e-commerce platforms, social media, and digital marketing campaigns.

How AI Improves Product Imagery with Background Removal and Object Detection

Product photography has always been a time-consuming and costly process. Traditionally, brands had to invest in professional studio setups, lighting, and post-production editing to achieve high-quality visuals. Today, AI-powered background removal and object detection technologies are making it faster and more efficient to produce professional-grade product images.

Background Removal for E-Commerce and Social Media: AI algorithms can instantly remove backgrounds from product images, replacing them with clean, neutral tones or customized settings. This is especially useful for online beauty retailers, as it allows them to create uniform product listings without the need for extensive manual editing. A lipstick or skincare bottle can be placed against a sleek, white background for an elegant product page or set against a creative backdrop for a themed campaign.

Object Detection for Smart Product Positioning: AI-powered object detection ensures that beauty products are properly centered, well-lit, and presented in the most visually appealing way. This technology can automatically recognize the shape, size, and features of a product, adjusting the framing or suggesting enhancements for better visibility.

These AI-driven enhancements streamline the content creation process while ensuring that every product is displayed in its best light, increasing engagement and purchase intent.

AI-Driven Visual Enhancements for Social Media and Marketing

In today's digital landscape, beauty brands rely heavily on social media and influencer marketing to connect with consumers. AI-powered content creation tools are making it easier for brands to generate eye-catching visuals for Instagram, TikTok, and other platforms.

By automating and optimizing visual content, AI helps brands create a stronger digital presence with engaging, high-quality imagery that attracts customers and encourages interaction.

Maintaining Brand Consistency with AI-Powered Image Recognition

Consistency is key in branding, especially in the beauty industry, where trust and recognition are built through highly curated visual storytelling. AI technologies such as logo detection and image quality assessment are helping brands ensure that all product visuals meet their guidelines before being published.

AI-Powered Logo Recognition: AI can scan and verify images to ensure that brand logos appear correctly, preventing inconsistencies in marketing materials. This is particularly useful when working with retailers, marketplaces, or influencers who need to use brand assets properly.

Ensuring Image Quality and Standardization: AI can assess product images to make sure they meet the required resolution, lighting, and composition standards. This eliminates blurry or poorly edited visuals that could damage a brand's reputation.

With AI-powered tools, beauty brands can maintain a polished, professional, and cohesive visual identity across all platforms, ensuring that every product image aligns with their branding strategy.

The Future of AI in Beauty Visuals

As AI continues to evolve, automated product imagery and content creation will become an essential part of marketing and e-commerce strategies in the beauty industry. Whether it's refining product photos, generating social media content, or ensuring branding consistency, AI-driven tools will enhance efficiency, creativity, and engagement.

For beauty brands looking to stand out in a crowded digital marketplace, leveraging AI-powered visual enhancements is no longer an option - it's a necessity.

The beauty industry is not just about glamorous products and stunning visuals - it also relies on a complex supply chain to ensure that everything from skincare to cosmetics reaches consumers efficiently and safely. In 2025, artificial intelligence is revolutionizing the manufacturing and distribution processes in the beauty sector, helping brands optimize production, reduce waste, and maintain quality standards. With computer vision, optical character recognition (OCR), and AI-powered analytics, companies can automate critical supply chain operations, making them more cost-effective and reliable.

How Computer Vision Enhances Quality Control and Inventory Management

One of the biggest challenges in beauty manufacturing is ensuring that every product meets the highest quality standards. Whether it's a foundation bottle, a skincare serum, or a lipstick tube, even minor defects in packaging or formulation can lead to product recalls, customer complaints, or financial losses. AI-powered computer vision is transforming quality control by allowing manufacturers to detect issues in real-time, preventing faulty products from reaching store shelves.

By leveraging these AI-driven improvements, beauty manufacturers can streamline operations, maintain product consistency, and reduce the risk of defective items reaching customers.

The Role of OCR in Labeling and Regulatory Compliance

The beauty industry is highly regulated, with strict guidelines on ingredient transparency, safety warnings, and labeling accuracy. Any errors in product descriptions or misprints on packaging can lead to compliance violations and potential fines. AI-powered optical character recognition (OCR) is helping brands digitally process, verify, and manage product labels to ensure they meet industry regulations.

By integrating OCR into manufacturing and packaging workflows, beauty companies can ensure compliance, protect brand reputation, and improve supply chain efficiency.

Reducing Costs and Minimizing Waste with AI-Driven Analytics

AI-powered predictive analytics is transforming the way beauty brands manage production costs and raw material usage. Instead of relying on manual forecasting, companies are using AI to analyze historical data, market trends, and real-time demand to make smarter decisions.

By leveraging AI-driven insights, beauty manufacturers are not only saving money but also contributing to a more sustainable and efficient industry.

The Future of AI in Beauty Supply Chains

As AI technologies continue to advance, the beauty industry will see even greater efficiency in product manufacturing, inventory control, and regulatory compliance. From preventing packaging defects to reducing waste and optimizing supply chain logistics, AI-driven solutions are transforming beauty brands into smarter, more sustainable businesses.

For companies looking to stay ahead in 2025, embracing AI-powered supply chain solutions is no longer optional - it's essential for long-term success.

The beauty industry is evolving beyond just trends and aesthetics. In 2025, brands are placing a stronger emphasis on safety, inclusivity, and compliance, ensuring that beauty products and experiences are not only effective but also ethical, diverse, and secure. AI is playing a crucial role in this shift, helping companies verify product authenticity, detect offensive content, and maintain regulatory compliance. With growing consumer awareness and stricter regulations, AI-driven solutions are helping brands build trust, protect customers, and create a more inclusive beauty landscape.

AI for Product Authenticity, Content Moderation, and User Safety

As the beauty industry expands, counterfeit products remain a serious issue. Fake cosmetics and skincare items not only harm brand reputation but can also pose health risks to consumers, as they often contain harmful or unregulated ingredients. AI-powered brand logo detection and product recognition allow companies to verify authenticity across online marketplaces, ensuring that customers receive genuine products.

AI is also helping moderate beauty-related content, especially on digital platforms where user-generated content is widespread. With the rise of video tutorials, live shopping events, and influencer promotions, brands must ensure that their platforms remain safe and appropriate for all audiences.

NSFW Recognition and Content Moderation: AI tools can automatically detect and filter inappropriate or misleading beauty content, ensuring that advertisements and product promotions align with brand values and industry standards.

User Safety in Online Beauty Platforms: AI can identify harmful trends, such as unauthorized medical-grade skincare treatments being promoted by unverified sources, helping to prevent misinformation and unsafe practices.

By integrating AI-powered safety measures, brands can protect their customers from counterfeit products, misleading marketing, and inappropriate content, creating a more secure beauty shopping experience.

Advancing Inclusivity with AI-Powered Beauty Technology

For years, the beauty industry has faced criticism for its lack of diversity in product formulations, shade ranges, and marketing materials. AI is changing this by enabling brands to develop more inclusive beauty products and experiences that cater to a wider audience.

These advancements not only enhance the customer experience but also reinforce the importance of diversity and representation in the beauty industry.

Automated Compliance and Ethical Beauty Standards

In 2025, ethical beauty practices and regulatory compliance are more important than ever. From clean beauty certifications to ingredient transparency, brands must ensure they meet industry regulations while maintaining consumer trust. AI is helping beauty companies automate compliance checks and streamline regulatory processes, reducing risks and operational costs.

By adopting AI-driven compliance tools, beauty brands can avoid legal complications, maintain ethical practices, and build long-term customer loyalty.

The Future of AI in Beauty Safety, Inclusivity, and Compliance

As beauty consumers become more informed and selective, safety, inclusivity, and ethical responsibility will no longer be optional - they will be industry standards. AI-powered solutions are helping brands meet these expectations by ensuring product authenticity, protecting users, embracing diversity, and automating compliance processes.

By investing in AI-driven safety and inclusivity measures, beauty companies can stay ahead of regulations, foster stronger customer relationships, and contribute to a more responsible beauty industry.

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5 AI Trends Shaping the Beauty Industry in 2025

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Discover the top AI trends revolutionizing the beauty industry in 2025, from virtual try-ons to personalized skincare and smart product recommendations. Learn how AI is shaping the future of beauty.

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“We must treat skincare data with the same care as medical records — because in the era of biometric beauty, privacy is non-negotiable.”

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“We must treat skincare data with the same care as medical records — because in the era of biometric beauty, privacy is non-negotiable.”

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— Chen & Patel, 2023, “AI in Dermatology”

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“Without diverse training datasets, AI risks perpetuating biases in skincare — making personalisation only personal for some.”

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“Without diverse training datasets, AI risks perpetuating biases in skincare — making personalisation only personal for some.”

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— Jiang & Wang, 2023, “Biases in AI-Based Dermatology Tools”

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In today's rapidly evolving cosmetics and personal care industry, the integration of artificial intelligence (AI) and augmented reality (AR) technologies is reshaping the way brands engage with consumers. According to a recent report by McKinsey, the global beauty industry is expected to see AI-driven tools influence up to 70% of customer interactions by 2027. Meanwhile, a survey by Research and Markets projects that the global market for AI in the beauty industry will reach $13.4 billion by 2030, growing at a compound annual growth rate (CAGR) of 20.6% from 2023 to 2030.

As these technologies become increasingly central to the industry, companies must stay ahead of key trends to maintain a competitive edge. In this CosmeticsDesign Q&A, Alice Chang, CEO and founder of Perfect Corp., delves into the findings of the company's latest report, "The Most Influential AI Trends in Beauty and Fashion." Chang offers insights into how AI and AR are driving personalization, sustainability, and consumer engagement, and discusses the challenges and opportunities brands face in adapting to these transformative technologies.

CDU: Can you provide an overview of the key trends identified in Perfect Corp's report and their potential impact on the cosmetics and personal care industry?

Alice Chang (AC): Our trend report, "The Most Influential AI Trends in Beauty and Fashion," identifies several key AI trends that are shaping the beauty and fashion industries.

At a high-level, our report surveyed a group of industry leaders to identify the major AI trends influencing beauty and fashion retail. The report explores the ways AI-powered virtual try-on experiences, conversational AI agents, and analysis tools will take customer service to new heights.

These tools are significantly increasing consumer confidence in online purchasing decisions, as the technology provides a more interactive and personalized way to discover beauty and fashion. AI is allowing consumers to find the best products for their needs through immersive experiences powered by precise AI technology.

Additionally, AI-powered shopping assistants, such as Perfect Corp.'s innovative PerfectGPT technology, will be the next advancement to help brands engage with consumers. These tools will provide real-time support and personalized advice to improve the customer experience, bringing a new level of engagement that delights customers.

Our trend report also finds that AI is helping to drive sustainability forward in the cosmetics and retail industry. Across industries, AI technology allows brands and retailers to minimize product waste.

Particularly in the beauty and fashion space, AI allows brands to offer virtual try-on and virtual product sampling, eliminating the need for physical product samples, and greatly reducing the waste created during the sampling process. AI also provides shoppers with the ability to test products and find their perfect shade match, ultimately reducing the waste created from product returns

CDU: The report highlights a growing emphasis on personalized beauty solutions. How do you see this trend influencing the way cosmetics and personal care brands approach product development?

AC: Personalized beauty solutions are transforming how beauty and skin care brands approach product development. The focus on personalization is driving more targeted research into how different ingredients affect various skin types and concerns, leading to more effective products.

Feedback from customers also helps brands refine their offerings, ensuring that products remain relevant and effective for a wide range of customer needs. We're seeing more brands using AI to analyze data, collect customer feedback, identify usage patterns to target specific preferences and develop products based on individual profiles-such as foundations that match specific skin tones or skin care products tailored to unique skin concerns.

The trend towards personalized beauty is pushing brands to become more consumer-centric, while embracing technology and data-driven approaches to product development. This shift not only meets the growing demand for tailored solutions but also fosters a deeper connection between brands and their customers, leading to more effective products and engaging experiences.

CDU: According to the report, there is an increased consumer demand for sustainable and eco-friendly products. What are the report's recommendations for brands looking to meet this demand effectively?

AC: Consumer demand for sustainable and eco-friendly products and brands continues to increase, and to meet this demand, there are several key strategies brands should implement to help pave the way for a more sustainable cosmetics and retail industry.

From a product standpoint, brands should prioritize the use of sustainably sourced, natural, and organic ingredients that are sourced from suppliers who adhere to ethical practices. Brands can also meet this demand by developing products with their entire lifecycle in mind-encouraging recycling or reuse of packaging, and considering take-back programs to close the loop.

Technology should also play an important role. Using AI and AR to optimize supply chains and reduce waste from product samples and returns is another way brands can track and manage their environmental impact more effectively. For example, our technology helped our partner KAO reduce plastic waste by 56 tons each year as a result of using our hair color virtual try-on.

CDU: The report mentions advancements in AR and AI technologies. Can you elaborate on how these technologies are transforming consumer engagement and product experiences in the cosmetics industry?

AC: There's no doubt that advancements in AR and AI are revolutionizing consumer engagement and product experiences in the cosmetics industry. These technologies create more interactive, informative, and enjoyable shopping experiences, thus fostering deeper connections between consumers and brands.

AR and AI technology allows consumers to virtually try-on makeup using their smartphones or in-store devices, providing a hyper-realistic preview of how products like concealer or eye shadow will look on their skin without the need for physical samples. By allowing consumers to see how different shades and formulations suit their skin tone and type before buying, it takes the guesswork out of selecting the right product-empowering consumers to make more informed purchasing decisions.

For skin care specifically, AI can analyze different skin conditions and concerns to recommend customized products and routines. AI-powered virtual consultants or assistants can also provide personalized advice and guide consumers through their shopping journey based on their specific requirements.

CDU: There is a significant rise in online beauty consultations and virtual try-ons according to the report. How should brands adjust their digital strategies to capitalize on this trend?

AC: Virtual try-on has become an essential component of the consumer journey in beauty. The technology allows brands and retailers to provide personalized and immersive experiences at scale, while empowering brands to significantly boost customer engagement and sales.

Not all VTO tech is built the same. To most effectively implement it, brands should look into solutions that provide accurate and realistic previews of how products will look on different skin tones and types, are accessible across various platforms including mobile apps and websites, and offer intuitive interfaces and seamless integration into all touchpoints of the shopping journey-this includes easy access to virtual try-on features from product pages, checkout flows, and customer service channels.

CDU: The report highlights the importance of multi-channel strategies. How should brands and suppliers adjust their distribution, marketing strategies, and customer engagement to take advantage of this trend?

AC: Brands should use a holistic approach when leveraging multi-channel strategies to improve distribution, marketing, and customer engagement, which not only enhances customer satisfaction, but drives growth and strengthens brand loyalty. This can be done in a few ways.

First, they should develop a robust omnichannel strategy that integrates online and offline channels-including ecommerce platforms, social media, brick and mortar stores, and third-party marketplaces-to ensure a consistent brand experience across all channels. To reach a broader audience, brands can leverage immersive technology.

Engagement can be significantly improved through providing a seamless experience across channels. Interactive features like virtual try-on, AI-powered live chats, and social media polls can engage customers and enhance their experience. What's more, the data from these various touch points can help brands tailor recommendations based on past purchases, browsing behavior, and preferences across different channels.

CDU: What are the primary challenges brands or retailers might face in adapting to the trends identified in the report, such as the integration of AI and AR technologies, and how can they overcome these challenges?

AC: One of the biggest challenges brands or retailers might face when looking to implement AI and AR technologies is the financial investment-but as long as they're doing their research and finding the tech that's going to best serve their customers, the ROI will far exceed the money spent.

Brands that make this investment often see exponential growth in sales and engagement. In fact, major beauty brands like Avon have seen a 320% increase in conversion rate, a 94% increase in average number of products viewed, and a 33% increase in average order value since implementing virtual try-on technology into their websites.

CDU: How do you foresee the role of emerging technologies, as discussed in the report, transforming the cosmetics and personal care industry in the next few years?

AC: In the next few years, as AI and generative AI technologies continue to advance and become more transformative, we're going to see more and more cosmetics and personal care brands adopt emerging technologies like AI and AR, especially for virtual try-on capabilities.

Almost every major beauty brand and retailer today-from Estée Lauder and Elf to Walmart and Sephora-has implemented this technology within their websites and mobile apps. Especially as e-commerce continues to grow, we're going to see more brands follow suit to maintain a competitive edge and provide shoppers with personalized experiences.

Generative AI will also play a greater role in the industry, specifically in the form of conversational AI assistants, such as Perfect Corp.'s groundbreaking PerfectGPT AI Assistant Framework. Through natural language processing and machine learning, these tools can understand customer preferences and provide tailored recommendations in ways that were not possible in the past.

These solutions will take customer service interactions and personalization to exciting new frontiers, powering product discovery, customized advice, and consumer engagement like never before

In this CosmeticsDesign Q&A, we spoke with ToolsGroup CEO Inna Kuznetsova for her insights into how AI is tackling demand volatility, high shipping costs, and sustainability issues in the cosmetics and personal care product supply chain.

With 'over 90% of a cosmetic product's environmental impact determined during the design phase,' integrating AI-backed solutions is becoming essential for cosmetics and personal care product manufacturers striving to meet sustainability goals, says AI...

Perfect Corp. has introduced its AI Hair Type Analysis technology, designed to enhance the hair care industry by accurately identifying hair textures and curl patterns, offering consumers personalized product recommendations and improving shopping...

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Unlocking the power of AI and AR: How technology is reshaping the beauty market

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With projections showing significant growth in AI's influence and market value in the coming years, AI and AR technologies are transforming the cosmetics and personal care industry by enhancing personalization, sustainability, and consumer engagement, according to a recent Perfect Corp report.

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How AI is transforming the beauty and spa industry

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Find out how AI is revolutionising the beauty and spa industry, from advanced skin diagnostics to personalised treatment planning – while keeping the human touch at its core

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Beauty Standards Make Me Ashamed Of My Features — & AI Makes It Worse

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The rise of AI influencers as a whole — from Reem to Kenza Layli, who was just crowned the first “Miss AI” in a virtual beauty pageant — makes me feel uncomfortable, but not for the reasons you might think.

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Beauty Brands Are Using AI to Supercharge Creativity and Innovation

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The race for AI-powered innovation is heating up across every industry, and beauty is no exception.