From foundation matching and real-time consulting to generative marketing and supply chain forecasting, artificial intelligence (AI) is integrated into nearly every part of the beauty business.
McKinsey analysis discover beauty company integrate Deploying AI-powered personalization and media campaigns has been reported to increase marketing productivity and increase conversions by up to 40% reach 20%. nevertheless, fashion The field continues to face challenges of authenticity and inclusivity as algorithms learn to interpret the full range of human skin and identity, according to the report.
Big brand, big tech
Leading beauty brands are treating AI as both a growth engine and creative backbone. shiny Estée Lauder reported that it is restructuring its business through enterprise AI implementation following a drop in market value due to weak travel retail sales. company partnered Collaborating with Microsoft to build a digital operating platform to support marketing and supply chain forecasting and Product innovation.
Glossy said the system’s generative models are currently being used to create advertising copy and visual content. and Reduce in-house creative assets and cut production schedules by nearly half. According to Estée Lauder’s financial disclosures, AI-powered media optimization increased advertising ROI by 31%.
At the retail level, Pimunto reported that ulta beauty uses machine learning to power its loyalty and personalization systems. Retailer platform integrates shopper profile, purchase history and Store interactions to provide targeted recommendations. This system has enabled Ulta to achieve a 95% repurchase rate for repeat customers while improving labor efficiency through automatic scheduling and inventory forecasting.
PYMNTS also reported that L’Oréal is using AI to power its virtual diagnostic and personalization engines, part of what CEO Nicolas Hieronymus called “a revolution in augmented beauty.” The company’s AI tools currently analyze millions of customer selfies and generate tint and skincare recommendations in real-time.
Advertisement: SCROLL TO CONTINUE
In another PYMNTS study, 70% of Gen Z shoppers say personalization is driving their purchasing decisions, highlighting the growing role of AI in shaping consumer expectations.
fashion business L’Oreal reported. Perfect Coop. and madison reed We are currently introducing “Agent AI,” a system that autonomously executes tasks such as prescription adjustments and inventory planning. and Virtual consultation. L’Oréal’s AI platform currently processes millions of real-time skin analyzes each month, connecting diagnosis and product suitability. Perfect Corp. integrates generative AI into client websites to instantly create looks from customers’ selfies. Madison Reed uses AI to monitor pigment consistency during production and automatically adjust color formulas to maintain quality.
Small brands and consumer readiness
The impact of AI extends beyond global enterprises. of American Chamber of Commerce An independent beauty startup reported that it is using AI-powered assistants and shade matching tools to scale its business. One company said that almost 75% of orders are now being placed through virtual try-on and consultation capabilities. These low-cost tools help small brands compete with enterprise players without the need for large data teams or complex infrastructure. Like a small beauty brand Beekman 1802 said Pimunto We believe that AI tools can be used to create more personalized educational content and build stronger community engagement.
Consumer attitudes towards AI in beauty are also changing. fashion We found that inclusivity remains a major concern, as many algorithms still struggle to recognize overall skin tones. The publication said the brand is prioritizing transparent data governance and fairness in model training to maintain consumer trust.
Vogue added that brand leaders also recognize the uneven deployment of AI across the value chain. Some are using it to generate creative and make predictions, while others are testing virtual advisors that learn from feedback and adjust recommendations in real time. The publication states that the next steps in beauty are: developing A connected system linking consumer data, product research and development and Supply chain forecasting with continuous feedback loops.
