Cosmetics Business reveals the 5 biggest ways AI is transforming beauty in new Trend Report

Artificial Intelligence is being hailed as the invention that will change the world. Here's how it is reshaping the beauty business

Market overview: At a glance

What's in this report?

Introduction

Top 5 trends:

1. Product personalisation

2. Chatbots

3. Retail experiences

4. Skin advisors

5. Voice activation

Country highlights

Summary & Growth Areas



Global AI Market Value & Growth, 2017

% growth 2017 vs 2016. Estimated figures. Source: Statistica



Key market challenges addressed

Beauty businesses are clamouring to integrate the capabilities of AI into their offer, but while being fast to market is key, they should also be wary of the challenges in deploying the technology in their projects.

Victoria Buchanan, Strategic Researcher at The Future Laboratory, explains: “AI is still very much in its infancy and I think brands could risk launching technologies that don’t deliver on their promise if they launch too soon. A lot of the tech that I’ve seen in this space can be quite gimmicky and would also be expensive to scale.”

Jennifer Tidy, Senior Vice President of ModiFace, agrees: “AI is buzzing in multiple industries, it’s the new powerhouse. But it has to be real AI – based on deep learning.”

If AI is not delivered well it can lead to an irritating or frustrating user experience. Nidhima Kohli, founder of Beauty Matching Engine says: “The failures with some AI companies lie within their consumer recommendations not being accurate enough, as AI includes multiple stages which a particular company may not specialise in. This could be because they don’t have a tech advantage for beauty or the data know how to build AI, which instead leads to them struggling to suggest the right recommendations and using a basic filter to display products or primarily pushing out their own brand instead,” says Kohli.

In order to grow with AI, brands and retailers need to have the right know how to achieve a seamless experience for their customers.

“A seamless experience would entail an enhanced personalised shopping journey with faultless recommendations,” explains Kohli. “I would say it also covers knowing what the customer really likes with a fast checkout and good conversion rates for the retailer.”



+57% growth in funding for AI startups since 2010

CAGR growth. Source: Accenture, Boost Your AIQ Transforming into an AI Business



. . .

This is a small extract of the full article which is available ONLY to premium content subscribers. Subscribers sign-in (top right) to read the article.

Or

Subscribe now to premium content on Cosmetics Business

Companies