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Glamor Makeover: Magnificent Application of AI in Beauty Industry

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October 13, 2023
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7 minutes
Artificial Intelligence has become so popular that it’s now almost impossible for us to find an industry that hasn’t embraced it. From healthcare, and finance to retail, transportation, and manufacturing, AI is revolutionizing the way humans work, live, and entertain.

The beauty industry is not an exception. With the rise of AI, the sector has been going through many innovative transformations. One can see the application of AI in the beauty industry in so many ways.

Virtual makeup try-ons and AI-driven products or interactive chatbots are just among the new experiences that AI brings to the beauty industry.

Talking about the importance of AI, Lital Marom, a Forbes Council member, said AI may be the next “revolutionary catalyst,” and the “defining technology of our era” that fundamentally transforms the way we live and do business.

The expert said each and every one of the organizations now should consider implementing AI to stay “competitive and future-ready”.

In this blog post, Consultport takes you on a tour of how beauty company leaders are embracing the AI wave. We’ll go through creative, customized, and innovative products and experiences that are made available thanks to the use of AI in the beauty industry.


  • AI has paved the way for creative and innovative products and services to be launched in the beauty industry.
  • Virtual try-on experience, personalized product recommendations, and product development are among the popular applications of AI in the beauty industry.
  • Now is the time for beauty firms to adopt AI into their strategies to improve customers’ experience and business performance.

AR-Powered Virtual Try-Ons

Virtual makeup try-on might be one of the most popular AI-powered experiences. This technology gives customers an AI-driven, Augmented Reality experience of trying on makeup products in stores or online.

Instead of really applying it on the skin, customers can easily view all lip, eye, cheek, face, and brow cosmetics products on their live video or image.

It allows modern, tech-savvy customers to have “entertaining and personalized” experiences. As this solution allows customers to try on more products than the traditional method, it has the potential for more positive shopping experiences and impactful business results.

Large brands including Estée Lauder, Shiseido, No7, Barry M, and MAC Cosmetics have used this technology.

Innovative skin analysis technology developed by Perfect.

Innovative skin analysis technology developed by Perfect.

Take Estée Lauder as an example.

The brand uses YouCam Makeup virtual try-on solutions in stores and online all over the world. With this technology, a customer can instantly and virtually try on the brand’s makeup products when they visit a store or use the technology from a phone/computer.

Data from Perfect Corp, the company that develops this solution, shows that Estée Lauder enjoys a 2.5 times higher conversion rate using its Lip Virtual Try-on, which allows customers to try “30 Lipstick shades in 30 seconds”.

L’Oréal Group and Amazon also cooperated with each other to bring an augmented reality app, to the online marketplace. The innovation enables Amazon customers to use the front camera on their phone to virtually try on different shades of lipstick in a live video of themselves or in a selfie.

Personalized Product Recommendations

With the rapid development of cosmetics beauty, a growing number of new products and services are on offer for customers every month.

Many customers may feel confused with too many choices they are offered. They may struggle to understand the difference between products and figure out which is the right one for them. A survey by Automat showed that as many as 70% of beauty consumers are “overwhelmed” by too many beauty product choices.

70% of beauty consumers are “overwhelmed” by too many beauty product choices

With the rise of AI in the beauty industry, many brands have used virtual or digital beauty advisors to assist customers and improve their experience. These advisors offer personalized experiences that closely match the needs of customers.

The virtual consultants can do just the same jobs that their human fellows do in physical stores. They both welcome customers, take time to understand their beauty needs and concerns, and most importantly offer them personalized recommendations and consultations.

Japanese brand Shiseid has launched their AI Makeup Advisor using Revieve’s AI Selfie Analysis program. The solution combines virtual try-on technology with personalized recommendations to offer customers makeup recommendations.

Customers can use the service offered by virtual advisors on the brand’s website. What they need to do is upload a selfie photo and give answers to questions. Advisors will then send customers a list of recommended products, which they can try on virtually before making a purchase.

Not only improving the cosmetic customers’ experience, the use of AI in the beauty industry also gives brands a better understanding of the users. According to Revieve, the use of digital advisors helps firms get insights into their customers as well as the way they interact across all touchpoints.

AI-Driven Product Development

The application of AI in the beauty industry is also notable in the development of new products. According to the American Cosmetic Association, AI can play a big role in the formulation process, which is at the heart of skincare and beauty products.

Experts use it to analyze a great amount of data on cosmetic ingredients and their characteristics including chemical composition, efficacy, and compatibility. The patterns and correlations found can help formulators in developing products that target specific types of skin effectively, said the association.

For example, Revela, a biotechnology platform, has discovered new molecules for consumer wellness applications using AI for molecular discovery and advanced biological models. It has used AI to sort out databases of chemical compounds and identify those with unique properties beneficial to skin care.

Besides ingredient data, AI is also used to analyze consumer reviews and market trends. It can help brands find promising ingredients, potential for product improvements, and innovative formulations that resonate with customers. The AI-powered approach to product development helps brands ensure they remain competitive and relevant in a changing landscape.

Personalized Skincare Analysis

Using AI to assist individual skincare analysis and insights is yet another magnificent application of AI in the beauty industry. AI-powered technologies are making skin type detection and analysis easier, quicker, and more effective.

With a photo or in real time through a live camera, AI technology by Perfect can help analyze face images for 14 types of skin concerns in seconds. This AI-powered solution analyzes three images of a person’s face from three directions: front, left, and right to detect such problems as acne and wrinkle. With this technology, customers can have a detailed skin report with personally tailored product recommendations.

The integration of AI Skin Diagnostic technology into the online shopping journey helps Marianna Naturals boost its online sales by 30% and dwell time by 330%, according to Perfect.

The integration of AI Skin Diagnostic technology into the online shopping journey helps Marianna Naturals boost its online sales by 30%

Cetaphil has also launched its AI Skin Analysis which helps to provide a tailored skincare solution to customers. To use this, customers just need to scan a QR code with their phone to access the Cetaphil AI Skin Analysis and take a selfie. The app will scan customers’ faces and analyze their skin before sending a personalized skin analysis report and skincare routine recommendations.

Benefits and Limitations of AI in the Beauty Industry

A study on the use of AI in the beauty industry highlighted the potential of AI in transforming the cosmetic sector and making the technologies more accessible to consumers.

AI can bring many benefits to beauty firms:
  • Personalization: Brands can offer their potential customers individual recommendations based on their needs and wants. This personalized solution can result in improved customer loyalty and satisfaction.
  • Efficiency: AI can also help beauty companies optimize their production processes and inventory management, from which they can reduce waste and increase efficiency.
  • Innovation: Technologies signify innovation. Brands can launch a number of innovative, interactive products and services that help to differentiate them from their competitors and increase their competitiveness in the market.
The authors also noted that companies need to be mindful of the challenges of AI as there have been concerns about consumers’ privacy due to the use of their images. Limitations of AI also lie in its bias and the high cost of AI technology implementation.

These require companies to be aware of the balance between improving their products while minimizing risks and challenges, according to the study.

An article by the Times of India argued that AI-powered beauty apps may lead to the loss of the reality touch. These technologies use algorithms and computer vision technology to “superimpose” layers onto the human face to make the skin super smooth, and perfect facial features.

These enhancements create an idealized version that is different from they real authentic one of real humans.


AI is sweeping through all sectors and walks of life. Whether a company adopts these new technologies or not will decide whether it can survive or thrive in the rapidly evolving business landscape like today.

AI is also revolutionizing the global beauty industry which is expected to have a market size of 13.34 billion USD by 2030 with a CAGR of 19.7% from 2021 to 2030, according to a report from InsightAce Analytic.

Now is the time for beauty companies to get on board and build competitive advantage by incorporating AI technologies in their strategy, Gregory Pal, Vice Product President of Mainspring Energy said in an article on Linkedin.

Are you ready to grasp incredible opportunities for new technologies to your business? Here at Consultport, we offer a range of consulting services to help firms get on board smoothly and effectively with their transformative strategies.