How AI is Revolutionizing Beauty Retail: Examples from the Real World

by Anh H. Nguyen

AI is changing the beauty industry in a big way, not just for businesses, but for regular shoppers, too. To show just how transformative it’s become, here are some real-world examples from well-known brands:

Part 1: For Consumers – Personalization and Virtual Try-On

Personalized Recommendations

Sephora's Virtual Artist

Gone are the days of generic, “one-size-fits-all” beauty advice. Now, thanks to AI, recommendations can be tailored specifically to you - your skin tone, type, beauty goals, and even your shopping habits.

• Sephora’s Virtual Artist app uses AI and augmented reality to suggest products that match your facial features, skin tone, and preferences.

  
  

• Clinique, using Perfect Corp. tech, has a foundation shade finder powered by AI, making sure customers get just the right match.

  
  

• Yves Rocher has seen an 11x jump in purchase rates after switching to AI-powered, personalized product suggestions, moving away from just showing “best sellers” to recommending what really suits each customer.

  
  

• YSL Rouge Sur Mesure is a revolutionary smart device from Yves Saint Laurent Beauty that allows users to create thousands of custom lip shades at home.

  
  

• Spas like Talise Spa at the Burj Al Arab in Dubai are using AI for skin and wellness consultations, creating hyper-personalized experiences for clients.

  
  

Virtual Try-On Tech

Perfect Corp. technology allows for hyper realistic virtual try-on for beauty products on Instagram.

Trying on makeup or skincare virtually, from your phone, laptop, or in a store, is now easy and fun. AI and AR let you see exactly how that lipstick or eyeshadow looks on you, all without physical contact.

• Walmart, in partnership with Perfect Corp., now lets shoppers virtually try on more than 1,400 makeup products, such as like e.l.f. Cosmetics, CoverGirl, Maybelline, and more, right in the Walmart app.

  
  

• Meta (Facebook/Instagram) also brings Perfect Corp.’s try-on tech into Instagram AR ads, so you can experiment with new looks while browsing your feed.

  
  

• Olay’s Skin Advisor analyzes selfies, predicts your skin age, and recommends products that really fit you, making online shopping much more personal.

  
  

Smart Mirrors and Interactive Displays

The Skin Visualizer by Shiseido that won the CES 2025 Innovation Award for significant technological advancements

In-store shopping has leveled up, too. AI-powered mirrors and digital kiosks can scan your features, recommend products, and show you instant virtual makeovers.

• Shiseido’s Skin Visualizer is an award-winning, contactless smart mirror device that assesses and visualizes multiple aspects of skin health without requiring makeup removal.

  
  

Part 2: For Businesses – Marketing, R&D, and Trend Forecasting

AI for Marketing

L'Oréal's ModiFace tech

Brands are using AI to fine-tune their marketing—everything from customized email campaigns to creative content, even down to how products show up in influencer videos.

• L'Oréal uses its ModiFace tech and backs platforms like Rembrand, generating AI-created content, personalizing emails, and integrating products into influencer videos (think Garnier shampoo popping up in YouTube clips).

  
  

• Prada uses AI to create visuals for Instagram, testing out new design ideas and improving engagement with their audience.

  
  

• Olay’s Skin Advisor doubles as a marketing tool—helping tailor campaign messages that really connect, which has boosted engagement rates.

  
  

Faster Product R&D

AI can sift through huge amounts of data - ingredients, customer reviews, even climate info- to spot emerging needs and trends. This speeds up new product development and ensures brands are meeting real demands.

• Proven Skincare uses AI to scan ingredient data and customer reviews, so they can deliver science-backed, personalized products faster than ever.

  
  

• Revela taps AI to search millions of compounds, discovering new skincare molecules like "Fibroquin" for improving skin firmness.

  
  

• Big players like Unilever, L’Oréal, P&G, and Henkel all use AI to move quickly from concept to shelf, using trend analysis and consumer data to create products that hit the mark.

  
  

Trend Prediction and Inventory

With so much data at their fingertips (from sales, social media, and even weather patterns), brands can spot new trends early, manage their stock more efficiently, and launch products with higher chances of success.

• Sephora Middle East uses AI-powered recommendations both online and in-store, tracking what’s popular and managing inventory based on evolving local preferences.

  
  

• Maybelline and Rare Beauty have both publicly acknowledged their use of TikTok Shop’s AI trend and inventory tools in 2025 to meet surging demand for products that suddenly go viral on the platform.

  
  

What’s Next? The Future with AI Bots

Looking ahead, AI-powered bots are making beauty retail even smarter. Brands like ULTA Beauty and new apps like SkinGPT are using these tools to offer real-time product advice both in-store and online. These bots can give nuanced recommendations, answer questions, and support staff with smart, personalized insights.

In short, AI in beauty retail isn’t just a futuristic dream. It’s very much here and making a difference in how we shop, discover, and enjoy beauty. From hyper-personalized recommendations to immersive experiences, AI is leaving the “one-size-fits-all” approach firmly in the past.