How Beauty Industry Use AI to Boost Sales

At Cosmoprof Miami 2025, industry leaders highlighted AI’s growing influence in building consumer-centric business models. Insights from reveal that AI is not just improving personalization. It’s redefining how brands engage with their audience, improve operations, and boost sales.

This article dives into how AI is driving online and offline sales in beauty retail. We explore its impact on retail, key consumer touchpoints, and purchase drivers. All these are backed by real-world case studies from beauty leaders.

If you’re ready to see how AI is transforming beauty industry keep reading.

AI is no longer a futuristic concept but a key driver of business growth. This technology is based on machine learning algorithms. The main purpose of the algorithms is to automate tasks, analyze data, and improve the decision-making process.

Beauty brands integrate AI into various customer touchpoints throughout the shopping journey. In the following sections, we will describe in detail which AI tools help improve each stage.

Data confirms that AI helps brands cut costs, increase personalization, and attract new customers. Brands that using AI deliver faster service, provide better recommendations, and increase revenue.

AI add value at every step of the customer journey, from discovery to after-sales service. To show you examples, we defined with customers.

Finding the right beauty product among thousands of options is a typical challenge. AI can improve the way customer find new products, make it more engaging and fun.

Gamified experience make shopping easier, more interesting and drive more sales.

AI-powered recommendations personalize what each shopper sees. The system takes into consideration user behavior, preferences, and past purchases. To suggest relevant products, algorythm analyzes skin tone, liked products, and browsing history.

Beauty retailers like Sephora use AI to recommend skincare, makeup, and fragrance items.

Augmented reality (AR) lets shoppers try beauty products in real-time before purchasing. For example, users can try out makeup, hair colors, and even nail polish. This reduces uncertainty and increases confidence in purchasing decisions.

Sephora’s AR try-on tool increased online conversions by . Generally, statistics show that AI/AR try-ons increase conversions .

"" can also be a trigger for impulse purchases. During the try-on, AI suggests complementary products, increasing the chances for cross-selling.

Retailer can upgrade their beauty apps to support visual search. So, users upload a photo of a makeup look they love, and AI suggests similar products. To engage customers, offer them to take a "Beauty Quiz".

This further simplifies discovery by narrowing choices based on personal needs. Quiz will help customers find products faster.

Here, retailers have an extra bonus. Collected customer insights can refine future marketing and selling strategies.

Social media is now a key product discovery channel, and AI plays a key role.
AR filters on Instagram, Snapchat, and TikTok let users try on branded beauty looks in real time.

Some time ago L’Oréal partnered with Instagram to integrate ModiFace AR try-ons. This move allowed shoppers to test lipstick shades within the app.

Nowadays, social commerce turns inspiration into instant purchases. If an influencer shows a virtual filter with a new eyeshadow, users are likely buy it immediately.

After discovering potential products, customers need to choose the best option.

The common questions they ask themselves are:

At this step AI can provide instant guidance.

Beauty is personal. The right product depends on factors like skin tone, concerns, and style. AI collects data from quizzes, reviews, and surveys to act as a virtual beauty consultant. For example, Ulta’s AI refines product recommendations by analyzing data from over 25 million loyalty members.

But why do customers prefer personalized suggestions?

It’s simple - when recommendations match their needs, they feel understood. That connection builds trust and makes them more likely to buy.

Skincare shoppers often need to understand their skin to choose appropriate products. AI-powered skin analysis tools use computer vision to assess a skin condition (via a photo or video). It usually evaluates factors like pores, wrinkles, moisture, and pigmentation. App then suggest products or routines targeted to the user’s specific issues.

Brands like Garnier and Olay have already integrated this technology of skin advisors.

that such tools enchances the shopping experience by adding scientific credibility. In a study of Gen Z consumers, an AI skincare advisor increased the hedonic value of the experience. In other words, it made the experience more enjoyable and rewarding.

Consumers care about product ingredients, whether avoiding allergens or prioritizing cruelty-free formulas. AI simplifies ingredient analysis by comparing products and providing clear insights.

Some retailers deploy chatbots that can answer complex questions.

For example, “”.

The AI will instantly compare the databases and respond with the best match.

AI chatbots can also act as virtual shopping assistants. Shoppers can ask, “” and receive real-time answers based on reviews, ingredient benefits, and customer ratings.

For example, Sephora’s chatbot, helps customers with product availability and shade matching. Quick, helpful answers keep customers on the site and guide them toward a purchase.

Reports show that are willing to use chatbots for simple issues or order info.

At the checkout page, conversions happen or get lost. AI can help e-commerce beauty stores improve drop-off rates. It can detect when a user is hesitating or has an abandoned cart.

For example, If a user pauses, AI can trigger a chatbot offering help or an exclusive discount.

AI-powered A/B testing optimizes checkout design by analyzing user behavior. It ensures key cues, like loyalty point usage or free gifts, appear at the right moment to drive action.

AI also personalizes checkout incentives to increase order value.

For example, a shopper buying eyeliner might see a pop up: “” .

AI chatbots and VA's (virtual assistants) handle post-purchaise questions. Wether they are about orders, products usage or issues. This improves customer satisfaction and loyalty.

For example, if a customer needs guidance on how to use a new facial device, an AI chatbot can assist right away (and escalate to human support if needed). The main benefit is that bots are available 24/7, since find long wait times irritating.

By the way,retailers love chatbots because they are quite cost effective solutions.

Brands can cut costs up to 30% as chatbot handles multiple inquiries at once and minimizesthe need for a large customer support team.

AI predicts when customers need to restock. Based on order history and usage patterns, brands can send timely reminders or one-click reorder links:

It’s been three months since your last cleanser. Are you ready for a refill?

Personalized outreach often comes via email or app notification powered by AI automation.

Some companies integrate this into their re-ordering subscription models.

So client receives products at the right time intervals.

🔵

Aftersales is always an opportunity to upsell. Brands integrate AI to analyze feedback and order history to suggest a complete beauty routine.

If someone buys a shampoo, system recommends the matching conditioner or hair mask for better results. The upsell usually appears in app or in newsletter.

What is more, aftersales and personalized recommendations allow to educate customers. By explaining on how to use products together, brands upsell extra items in a value-adding way.

Furthermore, AI-driven apps can provide daily or weekly beauty routine advice.

In general, beauty industry is a highly-competitive market. Loyalty programs for beauty retailers are powerful tools for attracting and keeping customers.
More and more companies invest in .

AI can be very helpful in loyalty programs. It can analyze customer behavior to tailor loyalty offers. If the data shows that a customer is likely to spend on perfume in the fall, the system sends an offer with double point on perfume around that time.

If another customer hasn’t shopped in 6 months, AI can trigger a win-back coupon only for them. According to research, are more likely to buy if they receive personalized loyalty rewards.

Major beauty retailers like Sephora and Ulta use AI-driven insights. Sephora’s system curates birthday gift choices based on past purchases. Ulta adjusts point promotions daily to gamify engagement.

Gamification keeps customers engaged by making loyalty programs more interactive. For example, a chatbot might say:

“”

This little tweak makes customers come back to the app.

The beauty industry moves fast. It is one of the most dynamic industries today. What is trending today might sell out tomorrow.

Social Listening process helps brands stay ahead by scanning posts to detect trends. If a make up style (or a "," as social media calls it) suddenly gains traction, AI alerts brands to adjust marketing or inventory.

Companies like Estée Lauder invest in AI to track consumer behavior and social buzz in real time. Generative AI ecosystems analyze data at speed, helping brands act before trends peak.

If a viral video makes brown mascara popular, AI insights guide marketing teams to push promotions and restock supply.

Estée Lauder even built . It is an AI agent that provides instant consumer insights.

Teams can ask questions like, “” and get real-time answers. This speed gives brands a competitive edge, ensuring they react to trends before competitors do.

This and other examples highlight the need for beauty brands integrate AI in social channels.

AI is transforming beauty retail. So far, we’ve explored its role in e-commerce, from recommendation engines to chatbots. Now, let’s see how AI is changing in-store shopping.

Smart mirrors and AR displays let customers try products without physical application. Charlotte Tilbury, for example, uses AI-powered mirrors that overlay makeup onto a shopper’s reflection. Consumers find such experience quite interactive and fun.

Beauty consultants also use AI to personalize recommendations. Ulta equips staff with tablets that analyze skin type, concerns, and past purchases. This allows consultants to suggest the best skincare or makeup routine.

Some stores go further with diagnostic kiosks that scan skin moisture and firmness. Based on the results, AI recommends tailored skincare solutions.

Even checkout is getting smarter. Some retailers are testing AI-powered self-checkout similar to Amazon’s model. speed up transactions and reduce wait times.

The point is that AI increase sales not by pushing products harder, but by making the buying experience more enjoyable. This matches key purchase drivers like confidence, value, and emotional connection.

One major barrier to purchasing beauty products (especially online) is uncertainty. Will this foundation match me? Will this lipstick look good?

AI tools solve this problem by giving shoppers confidence in their choices. When customers can virtually see a product on themselves, they are much more likely to click “buy now.”

Personalization increases spending by making shopping more relevant. When customers see products that match their tastes, they’re more likely to buy more.

A shopper who planned to buy one item might add a matching lip liner and a top-rated cleanser. All suggested by AI. These smart recommendations work like an expert salesperson, naturally guiding cross-sells and upsells.

Artificial intelligence makes shopping faster and smoother. Today’s consumers don’t like to wait. They expect quick, top-tier service. A chatbot answering questions in real-time is more effective than waiting hours for an email.

Some prefer bot support over human. Especially when they want instant answers without small talk. high satisfaction with AI chat, even slightly higher than human interactions.

In stores, AI kiosks let customers find what they need without waiting for a sales associate.

In e-commerce, AI speeds up checkout with auto-filled details and one-click reorders. A seamless process keeps customers from abandoning their carts. People value efficiency.

A shopper who spends 20 minutes playing with virtual makeup mirror is likely to feel more connected to the brand. The more interactive and enjoyable the experience, the stronger the emotional bond.

Engaged customers are more likely to buy, join loyalty programs, follow brand on social media, and keep coming back.

Generative AI takes this engagement further by offering hyper-personalized experiences. A 2025 McKinsey report estimates that generative AI could add in revenue to the global beauty industry.

Major beauty brands and retailers have been early adopters of AI. They are using it to increase sales and deepen customer engagement. In this section, we are exploring case studies of how beauty sector innovators use AI across channels

How can you imagine the fusion of perfume, music, and AI?

Liquid Sound, an innovative AI startup from NYC, has made this a reality. Using advanced AI technology, they transform audio recordings into unique fragrance compositions.

On the brand's website, visitors can record a sound for up to a minute. The system then analyzes the audio and translates it into four key "muscle notes."

Users receive a breakdown of the top, middle, and base fragrance notes. From there, they can customize the bottle and cap with three finish options and name their fragrance.

Liquid Sound isn’t just about scent - it’s about creativity and personalization. In an interview with , the company’s CEO shared his vision:

With AI-driven fragrance creation, Liquid Sound is redefining the way we experience scent.

The question now is: What will your sound smell like?

But here’s what makes this project even more exciting. We at Ulan Software were behind the technology that brought it to life.

If you’d like to learn more about our collaboration, check: .

L’Oréal has made artificial intelligence a central part of its strategy. They implementing it across all stages, from product development to retail.

Brand recognized the potential of AR for product try-ons early on. In 2018, it acquired ModiFace, a leading AR/AI beauty tech company, to bring this vision to life.

ModiFace’s technology simulates cosmetics on live video. Now it is integrated into many of L’Oréal’s brand websites and mobile apps.

Shoppers on Lancôme, Maybelline, NYX, and other L’Oréal sites can virtually try on makeup shades with highly realistic results. This has streamlined the decision-making process and fueled strong online sales growth.

L’Oréal’s Chief Digital Officer the acquisition as a key milestone:

ELC brands widely use AR try-on tools through partnerships with tech providers. MAC Cosmetics was one of the first to introduce AR lipstick try-ons. The Estée Lauder website also offers Virtual Try-On for makeup and foundation matching.

These solutions recreate the in-store experience online. They help customers choose the right shades with confidence. For example, Estée Lauder’s lipstick try-on app adjusts for different lighting conditions, like daylight and office light. This makes the experience more realistic.

Clinique also launched an AI foundation finder, which scans a customer’s photo to suggest the best shade. This reduces returns and improves satisfaction, which is key for prestige beauty brands.

ELC also explores voice-activated AI for hands-free beauty advice. The Estée Lauder Nighttime Expert is a Google Assistant voice app that gives personalized skincare tips.

Users can say, “” and the assistant will recommend the right product.

ELC also uses chatbots on social media platforms to offer makeup tips, product info, and book in-store services.

Looking to learn more about AI advancements in beauty sector?
Read our article:

We can say that AI is a mindset shift for the beauty industry. It’s changing how brands create, sell, and connect with customers. Companies that embrace this transformation are leading the next era of beauty retail.

The question is no longer if AI will shape the industry but how fast brands can adapt. Early adopters are already seeing the benefits. These are higher conversions, deeper customer loyalty, and more immersive shopping experiences.

The real challenge isn’t whether AI belongs in beauty, but how fast brands can adapt and use it to their advantage.

At Ulan Software, we know this firsthand. We’ve been at the forefront of AI innovation, collaborating with Liquid Sound.

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How Beauty Industry Use AI to Boost Sales - 2025 Overview

How AI is Driving Sales in the Beauty & Cosmetics Industry?

AI at Key Customers' Touchpoints

1. Product Discovery

2. AI-Driven Product Selection & Comparison

3. Checkout & Payment

4. Aftersales & Customer Retention

5. Loyalty Programs

6. Social Commerce

AI Across Online and Offline Retail Channels

How Does AI Impact the Beauty Shopping Experience?

Increased Confidence = Higher Conversions

Personalization = More Spending

Convenience & Speed = Higher Conversion

Engagement & Enjoyment = Customer Loyalty

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How Beauty Brands Are Winning with AI: Case Studies

Liquid Sound

L’Oréal Group

Estée Lauder Companies

Final Thoughts

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