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Five ways AI is supporting the Beauty Industry’s Transformation.

Updated: Feb 7

By Dr. Ayesha Khanna

Five ways AI is supporting the beauty industry’s transformation. 

AI is rapidly infiltrating the beauty industry, reshaping product conception, personalization, marketing, and manufacturing. The sector is poised for significant growth, with a projected market value of $13.34 billion by 2030, boasting a nearly 20% CAGR. AI contributes to the industry's evolution in five key beauty trends, enhancing relevance and customer value. 

1. Hyper-personalization 

Hyper-personalization has risen as a dominant force reshaping the beauty industry, forever altering the way brands engage with consumers. In an era where individuality is celebrated, approximately 80% of customers now favor brands offering personalized products and experiences. This approach

transcends the traditional one-size-fits-all model, engendering higher customer loyalty while simultaneously fueling revenue growth. 

Take HautAI's SkinGPT, for example, a generative AI tool that adeptly predicts how an individual's skin might evolve with the use of different skincare products. By simulating personalized outcomes, it empowers users to visualize potential effects tailored to their unique needs, elevating the overall customer experience and forging stronger connections between consumers and beauty brands. 

2. Diversity and inclusion 

The beauty industry's evolution towards greater diversity and inclusion is a powerful testament to its commitment to celebrating human uniqueness. Beyond mere representation, this shift aims to cater to diverse needs.

Notable examples include L'Oréal's collaboration with Prada on the HAPTA precision lipstick applicator, aiding individuals with mobility challenges in makeup expression. Estée Lauder's innovative AI application for the visually impaired is another milestone, using AI, voice recognition, and augmented reality for enhanced makeup experiences. 

These initiatives reflect a commitment to serve everyone, irrespective of age, gender, ethnicity, ability, or identity, setting a positive example for inclusive practices across industries. 

3. Wellness 

The concept of beauty products has evolved over time from being used to make people look good to a more holistic concept of wellbeing.

One of the most dynamic areas of innovation within this industry revolves around the microbiome. Both Unilever and L'Oréal, in their pursuit of microbiome research, are employing cutting-edge technologies. 

Unilever, in partnership with IBM and Eagle Genomics, is using AI to unearth insights in microbiome datasets, leading to innovative treatments for dry skin. 

Meanwhile, L'Oréal Group envisions the future of cosmetics in personalized skincare products utilizing microbiome technology. These advancements also extend to sun protection, where microbial-based sunscreens are expected to play a vital role in photoprotection products, countering the harmful effects of ultraviolet rays. 

4. Digital beauty

Digital beauty is a transformative trend reshaping the industry, blurring the lines between the real and virtual worlds. 

Beauty brands are increasingly venturing into the metaverse to create immersive experiences and offer virtual beauty products. For instance, Paris Hilton hosted a metaverse Halloween party in collaboration with Urban Decay in Roblox, while Rihanna's Fenty Beauty has trademarked virtual cosmetics and hair care products. 

Virtual influencers like Lil Miquela and Bermuda have gained immense followings, redefining brand-consumer interactions. Brands such as L'Oréal partner with platforms like Ready Player Me, allowing users to create avatars adorned with makeup and hairstyles, embracing the digital beauty revolution. This trend continues to evolve, making the virtual realm an integral part of the industry's future.

5. Sustainability 

The beauty industry has been steadily increasing its commitment to adopting greener and more sustainable practices over recent years. One area of concern is that the beauty industry predominantly relies on ingredients derived from plants, animals, and fossil fuels, making it challenging to meet the demand for "natural" ingredients. One emerging trend is the use of synthetic biology to create sustainable alternatives to natural ingredients in controlled environments. Utilizing AI's capabilities, scientists can process

extensive genetic data, detect patterns, and generate predictions that would be unattainable through human efforts alone. 

Take K18 Hair, which is gaining immense popularity with over 20 billion TikTok views and a presence on Sephora's bestseller list. The buzz surrounds K18 Hair's patented K18PEPTIDE™, a synthetic biology haircare ingredient that mimics the natural structure and functionality of keratin proteins and repairs hair damage on a molecular level. 

Are you ready? 

Today, the beauty industry is evolving to reflect the values of its customers: wellness, diversity, sustainability, and their desire for personalized products. The increasing integration of technology, especially AI, will further enhance the industry's transformation, making it more customer-centered, inclusive, and environmentally friendly.


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