The beauty and personal care sector is no stranger to change, but the current wave of transformation is unlike any we’ve seen before.
As the industry starts to experience the full power of artificial intelligence (AI), it is stepping into a new era of product development and formulation, defined by hyper-personalisation, accelerated innovation, and predictive insight. And while no one is disputing the profound opportunities powered by AI-assisted formulations, including virtual ‘try-ons,’ and data-driven trend forecasting, these capabilities have the potential to radically reshape the entire value chain, impacting:
How ingredients and raw materials are sourced
How we build efficient formulations
Processing momentum
Raising significant job security fears
To navigate this technological leap successfully, it is important that we never lose sight of the fact that developing beauty and personal care products are a deeply human endeavour. And, while it is commonly felt that that AI can assist in analysing formulations, recommend ingredients and recipes, and predict product outcomes, it cannot replace the creativity, consumer understanding, and intuition that industry professionals bring to the table. After all, beauty products resonate with consumers on a very human and emotional level.
This makes it important to build in firms guardrails to prevent and contain risks involved in using AI to augment, not replace the work done by a beauty brand’s marketing or product development teams.
In this rapidly evolving space, formulators and brand leaders who blend the analytical power of AI with the unquestionable power of human expertise will ultimately be in the winning seat! Read on as we discuss 5 areas where AI is significantly impacting the beauty, cosmetic and personal care sector.
1. Redefining consumer expectations
One of AI’s most celebrated contributions is its ability to drive hyper-personalisation. Using advanced machine learning and data analytics, AI can analyse skin types, tone, preferences, environmental factors, and even genetic predispositions to recommend bespoke beauty solutions.
This is illustrated by the announcement made by the AI company HAUT.AI, which announced that Clarins, Beiersdorf, and Unilever are among the first adopters of its generative AI-powered platform, SkinGPT which analyses facial photos to predict future aging and simulate the effects of skincare products and treatments. The AI company furthermore launched a consumer-facing platform Generative Skin, which enables consumers to upload their photos for skincare product advice and photos simulating future results.
2. AI - the formulator's ally
Traditionally, new product development in the beauty and personal care industry has been a time-intensive process involving trial, error, and iteration. But AI can accelerate this process – analysing vast databases of ingredients, efficacy studies, and regulatory information to suggest optimised formulations. One important game changer is that AI can analyse interactions between ingredients ensuring stability and minimising the risk of adverse reactions. AI also enables brands to adapt formulations to meet specific consumer demands – whether for enhanced sun protection, anti-aging benefits, or alerting consumers to the use of restricted ingredients. Generative algorithms can even predict consumer preferences before products hit the market.
However, the real power of AI lies not in replacing human formulators but in empowering them.
The creative and sensory aspects of formulation such as texture, fragrance, and user experience still require human intuition and expertise. We believe that in this new paradigm, we will see a shift as formulators become “AI-augmented creators,” blending scientific insight with machine-driven intelligence to innovate faster and smarter.
3. Predictive insights & trend forecasting
The beauty and personal care industry cannot dispute the fact that AI will continue to revolutionise how brands identify and respond to emerging beauty trends. By scraping social media platforms, search data, and consumer reviews, AI can detect shifts in consumer sentiment and rising ingredients or aesthetics. Having access to this valuable knowledge will allow marketers and product developers to pivot more rapidly, and result in the ability to create timely and on-trend campaigns and critical launches that resonate with their target audience.
In addition, AI-powered sentiment analysis can provide a feedback loop for existing products, highlighting what works while making suggestions where improvements are needed. This could bring agility and precision to product lifecycles that were previously reliant on slower, manual data collection.
4. Enhanced consumer engagement and virtual experiences
AI can furthermore enable immersive and intelligent consumer experiences. Virtual ‘try-ons,’ powered by augmented reality and AI, can allow consumers to test makeup or hairstyles in real-time, reducing the friction and frustration of shopping online. This also ties in with chatbots equipped with natural language processing (NLP). This technology offers round-the-clock personalised support – effectively bridging the gap between digital convenience and human-like service. Currently, chatbots are used by some impressive brands, including Kiehl’s, L’Oreal Paris, and Estée Lauder. However, some consumers still value an in-person or in-store experience, and for them, the jury is still out on whether chatbots truly assist by offering a personalised and interactive experience or simply add to further frustration.
5. Where AI ends, expertise begins
Even though AI’s vast capabilities are undisputed, human expertise in the sector remains a valuable and critical resource. For most consumers, the science of beauty is deeply emotional and subject to unique cultural norms and values – factors that algorithms can’t fully grasp. For brands to speak to the aspirations of consumers, in terms of creative direction, brand storytelling, sensory evaluation, and ethical considerations will still require the nuance of human judgment as we move forward.
One way to ensure this is that formulators, marketers, and brand leaders should work symbiotically with AI. While machines provide speed and scale, humans provide soul. The future of beauty lies in this delicate balance act: leveraging AI to unlock possibilities, while anchoring innovation in empathy, creativity, and deep industry knowledge.
Thoughtfully shaping the future
The fusion of AI and beauty is not a fleeting trend but a fundamental shift. For beauty brands and niche, indie, or heritage labels, the key should lie in embracing AI as a collaborator, not a competitor. By blending technological prowess with human creativity, the beauty and personal care industry can redefine standards, inspire loyalty, and deliver truly meaningful products and experiences.
For more information on the impact of AI on the beauty and personal care industry why not reach out to our specialist team? Chat to us today for more insights.
