AI and AR Are Already Becoming Vital Tools For Beauty Companies – Ulta and Sephora Look to Cash In With New Tech

Beauty brands have started experimenting with generative AI and AR technologies to offer new solutions to customers.

Through generative AI, they can create personalized products and ads for users, while AR offers virtual try-on solutions, allowing the customers to try out the products before making online purchases.

Generative AI enters the Beauty Industry

Generative AI technologies have captivated the world in 2023, in continuation of a trend kickstarted by the launch of ChatGPT in November 2022.

Right now, multiple tech giants have created their own generative AI solutions, which already include tools for the creation of text, music, images, and more.

With the tools out, various industries were quick to adopt them, and interestingly enough, multiple brands from the beauty industry were among the most enthusiastic adopters.

The ones that stand out the most include Sephora and Ulta Beauty, which have found that generative AI combined with AR tech can take the personalization and customization of their products to a new level.

How Can Companies Benefit from Using AI in the Beauty Sector?

Every individual body is different, and standardized products can only go so far in creating the perfect fit for individual customers.

As a result, true personalization was quite challenging until now. The new technologies can allow the brands to make every product perfect for the specific customer that is ordering it.

Through generative AI, companies can analyze customer data and then use it to formulate highly customized products.

Prose, for example, recently unveiled an AI-powered skincare line, which combines a proprietary algorithm with user insight to create an ultra-personalized formula for the customer.

Sephora and Ulta Beauty are also using generative AI to create personalized skincare products.

The most interesting part is that the brands have already recognized the potential of AI technologies, despite it being in its very early days, even with functional products out in the market.

In time, this technology will begin to mature, which will likely draw in more brands to generative AI and AR tech.

New Solutions Emerged from AR Technologies

Speaking of AR, beauty brands have adopted it through social media platforms and tech firm partnerships. Their virtual try-on solutions allow users to bring traditional physical experiences to the digital world.

This closes the gap between online and in-person shopping, potentially driving a large increase in sales if the feature works well.

There have already been several partnerships dedicated to this goal. Supergoop and OPI teamed up with Snap to launch try-on lenses for new products.

Then, there is a suncare and self-tanning brand, Bondi Sands, which partnered with Perfect Corp to create a virtual self-tanner try-on solution for the UK, US, Europe, and Australia.

Perfect Corp also teamed up with Dufry to create a try-on solution for makeup, which will be available on airports around the globe.

Finally, Dior has also launched a live online consultation service for beauty customers. It uses AR makeup virtual try-on technology to let users test makeup-related products.

Even More Benefits for the Customers

The customers have also been thrilled with the new technology.

Around 19% of US users alone have said that try-on solutions have been helpful in testing the products, and they made the buyers feel more confident about their purchases.

Try-ons do not only inspire purchase, but they also encourage users to stick with their chosen brand.

So far, beauty brands’ users have primarily used their apps to keep track of discounts and loyalty points. Now, with new technologies, beauty brands can use apps to engage customers with additional services and content.

One example comes from Charlotte Tilbury, which rolled out a first-of-its-kind ecommerce app offering a number of benefits.

Users can get personal recommendations, a video library filled with tutorials and guides, early access to new products, and more.

Another example comes from Estee Lauder, which launched an app in Ireland and the UK offering help with applying makeup to visually impaired users.

These are only some examples of the benefits that users and companies can enjoy if they approach AI in the right way.

Firms can boost customer loyalty and, therefore, their sales numbers. As for users, they have a higher chance of being satisfied with the purchase and usage of the desired products.

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