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Spotlighting AI in Beauty: The Brands Tuned In and Turned On

Mar 11, 2025

Industry Trends

Spotlighting AI in Beauty: The Brands Tuned In and Turned On

Imagine having an expert skincare, haircare, or makeup consultation, tailored to you, at your very fingertips. This is now the reality for the masses, as we see AI in beauty transform how we approach our routines.

AI in beauty is projected to reach $8.1billion by 2028, with some optimistic projections suggesting the market could expand to $16.4billion by 2033. This growth is occurring within a robust global beauty market, one which predicts AI-driven tools to influence up to 70% of customer interactions in beauty by 2027, spotlighting technology’s rapidly-expanding reach.

OG brands like Skin&Me and Function of Beauty, once seemed like a far-off dream, but recent developments in technology are proving that personalised beauty is fast becoming a reality for us all. Apps and platforms are now able to work with AI to analyse and recommend products that are uniquely suited to you. This precision and customisation is that which traditional beauty products simply can’t match.

Can AI in beauty truly revolutionise the way we shop for our beauty products? The answer appears to be a resounding yes, thanks to AI becoming an integral part of the industry, so let’s explore it below!

THE ADVANTAGES OF USING AI IN BEAUTY

Higher conversion rates and lower cart abandonment 

The personalisation aspect when it comes to the use of AI in beauty has boosted brand performance significantly. Let’s take a look at Tarte Cosmetics’ implementation of a virtual try-on tool, in collaboration with Perfect Corp., for example.

The combination of AI and AR technology allowed Tarte to provide realistic virtual try-ons and a Foundation Shade Finder tool, which instantly increased customer engagement. Following its success on the YouCam app, tarte expanded the virtual try-on experience to its website and saw remarkable results, including a 200% increase in sales for customers using the AR tools and a 30% increase in add-to-cart actions. The company then saw a drastic increase in traffic, with time spent on the website up by 112%.

In more general terms, SwiftERM has since reported that utilising AI in beauty for personalisation can lead up to a 20% increase in sales across the board, alongside increased average order value and improved customer loyalty. Consumers no longer want the risk that comes with beauty purchases, they want to be sure about what they are spending their money on and interacting with AI during the purchase journey is a way of ensuring this.

Enhancing the user experience

It’s not just the business side that AI in beauty can positively impact. The nature of AI-powered virtual assistants, try-on cams, and e-consultations provide a personalised experience, generally increasing customer satisfaction. 

Shisedo partnered with Revieve to launch an AI Makeup Advisor, an experience that produces AI-powered recommendations and true-to-life virtual try-on technologies, all based on a user’s personal beauty goals. This tool allows a user to try on the recommended products so that they can judge for themselves whether they like it or not. Beyond that, it helps users bypass the seemingly infinite product choices, instead narrowing down the selection to what would “best” suit them. Tailored recommendations based on a user’s unique beauty goals and needs is a guaranteed way to encourage customer loyalty and increase satisfaction.

WHICH BRANDS ARE ADOPTING AI IN BEAUTY?

Estée Lauder’s voice-enabled makeup assistant

Estée Lauder recently leaned into AI and AR to launch its voice-enabled makeup assistant, to help visually-impaired users apply makeup more confidently and with ease. Combining facial mapping technology with responsive AR overlays, the app offers real-time voice feedback, guiding users on makeup application by identifying areas that need touch-ups and ensuring even coverage. With over 2 million people in the UK living with sight loss, ELC developed this app to promote self-expression and independence for visually impaired individuals.

Estee Lauder's contribution to AI in beauty

Sephora combines facial mapping with beauty education

Developed with Map My Beauty, Sephora’s Pocket Contour app joins team ‘AI in beauty’ by analysing selfies and offering tailored contouring tips based on a user’s facial features, helping users identify their face shape and guiding them through step-by-step makeup tutorials which are best suited to them. With this new feature, Sephora makes it easier for customers to master makeup techniques, empowering them to create personalised looks from home.

Sephora Pocket Contour app

Cetaphil tackles skin assessments with MYSKIN

Cetaphil launched its AI Skin Analysis tool, a personalised skincare solution that offers skin assessments and regimen recommendations in seconds. By simply taking a selfie, users receive a comprehensive report that identifies their skin type, concerns, and predisposition to various conditions, using data from 70,000 diverse skin images. Powered by Perfect Corp, a frontrunner when it comes to AI in beauty technology, the tool provides insights into categories like acne, hydration, and wrinkles, helping consumers make informed skincare decisions. Validated for accuracy, the tool delivers consistent results and complements Cetaphil’s Skincare Finder, ultimately enhancing the shopping experience.

@cetaphilcanada

Picture this: Personalized skin advice just for YOU! Our Faces of Cetaphil got the scoop! With AI skin analysis, custom demos, and expert dermatologist tips, they’re ready to light up the runway with flawless skin! *All content shown features US product, please visit our website to see Canadian specific products. #SpaDay #Cetaphil #WeDoSkinYouDoYou #FashionWeek #FashionWeekNYC

♬ original sound – Cetaphil Canada

AVON is proof that digital transformation was always on the cards for the industry

Chatbots are also transforming the beauty industry by offering customers personalised, convenient, and engaging interactions. Avon’s ‘Avon On’ app was launched to empower representatives with tools to manage customer communications and inventory, leading to a 24% annual increase in app usage. These AI-driven assistants not only streamline the shopping experience for customers but also drive measurable business outcomes, including increased engagement, improved efficiency, and higher sales. It’s a win-win!

THE FUTURE OF AI IN BEAUTY

AI is only set to become more sophisticated. We expect its ability to take things even further when it comes to understanding consumer preferences, emotions, and diversity, to be imminent. Advanced models will eventually be able to create entirely new products by mapping facial features in more depth and leveraging real-time data, helping companies create hyper-personalised products and experiences that cater to individual needs and wants, increasing conversion rates up to 40%.

Additionally, AI-driven chatbots, packaging concept development, and formula development are all on the cards for the adopters of AI in beauty, keeping them ahead of the curve as we see advanced technology become increasingly implemented in all corners of the beauty industry.

Our influencer marketing agency and social agency are located worldwide, with our agency network based in the USA, UK, UAE and China.

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@sociallypowerful

Author

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Shannon Maher

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