Editor’s note: This first of a two-part Q&A with beauty tech visionaries uncovers drivers and uses for digital technologies in beauty. Part II explores the untapped potential and outlook for such innovations to advance product development. In this part, insights are provided by Haut.AI, MaquillAR Studio, NINU Perfume, Revieve and EveLab Insight.
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Editor’s note: This first of a two-part Q&A with beauty tech visionaries uncovers drivers and uses for digital technologies in beauty. Part II explores the untapped potential and outlook for such innovations to advance product development. In this part, insights are provided by Haut.AI, MaquillAR Studio, NINU Perfume, Revieve and EveLab Insight.
The appetite for digital technologies today is insatiable. Bain & Company reported1 the market for artificial intelligence (AI)-related software and hardware is expected to grow between 40% and 55% from 2024 to reach $990 billion by 2027. The source adds that related demand for upstream components could rise 30% by 2026, creating a data chip shortage.
“Generative AI is the prime mover of the current wave of change, but it is complicated [in part] … by the need to adapt business processes to deliver value,” the firm adds, in its fifth Annual Global Technology Report.1 “Companies are moving beyond the experimentation phase and are beginning to scale generative AI across the enterprise.”
The source Medium highlights2 that in today’s Digital Renaissance, “… technology acts as the catalyst for creativity and innovation.” How? Per the source, by bringing the world to everyone’s fingertips through:
- Platforms like Pinterest and Instagram showcasing global talents and giving creators a vast pool of inspiration to dive into,
- Other digital platforms that support collaboration beyond borders,
- Easy access to digital creation tools and education, and
- Offering consumers enhanced experiences via augmented and virtual realities.
Within this virtual realm, technologies have also opened digital portals for the research, discovery and experimentation of beauty products.
This two-part Q&A with beauty tech visionaries seeks to uncover the latest trends, drivers, uses, untapped potential and outlook for such digital innovations in our industry.
Special thanks to our contributors, including:
- Anastasia Georgievskaya (AG), CEO and founder, Haut.AI,
- Sofi Chernyak (SC), founder and creative director, MaquillAR Studio,
- Marko Matijevic (MM), founder and inventor, NINU Perfume,
- Irina Mazur (IM), CPO and CMO, Revieve (IM) and
- Nick Howard (NH), director of global strategy, EveLab Insight.
C&T: What digital technologies are trending in beauty and personal care and why?
Personalization, Immediacy, Skin Care Try-on via Generative Predictive AI
AG: Personalization is a major driving force. People are tired of the endless trial-and-error process when it comes to beauty products. Consumers want solutions that work right away, tailored specifically to their skin, hair and beauty needs. They don’t want to waste time or money on products that might not be effective. It’s this desire for immediate, tailored results that’s driving the push for more innovation in the beauty industry. This shift is driven by advancements in AI and machine learning, which allow brands to offer these personalized experiences.
Another exciting development is generative AI (GenAI) in skin care try-on, such as SkinGPT technology. While traditional augmented reality (AR) has been great for trying on makeup or experimenting with hair colors, skin care has always been a bit more complicated. SkinGPT addresses this by offering photorealistic, scientifically backed predictions of how skin might change over time with or without certain products. This gives users a much deeper and more accurate understanding of what to expect from their skin care routine. It goes beyond the simple filters you might see on social media, offering meaningful insights that help consumers make more informed decisions about the products they choose.
Transforming Retail Experiences: AR Mirrors, Personalization, DNA-based Recommendations
SC: For four years, since the day I started my agency, MaquillAR Studio, we have been closely watching, exploring and pioneering technology trends in beauty, as nothing evolves faster than the innovation industry and inspires us more to be on the edge of the new.
From this point of view, I believe that one rising technological trend is the transformation of in-store and pop-up experiences. For example, many brands are investing in augmented reality mirrors (digital screens projecting an image from a live camera and digital elements and transformations added onto an original video) that can serve as exciting gateways to the brand universe, whether it comes to building virtual try-ons for makeup, clothes and accessories, or immersive branded worlds within large screens.
Large-scale AR indoor and outdoor enhances customer engagement, making the shopping experience more memorable, encouraging foot traffic and fostering a stronger connection between consumers and brands, leading to a 7% to 40% increase in sales and customer loyalty.
Another highly relevant use case of technology today is AI-driven personalization and skin analytics. We can use AI nowadays to determine the health of the skin and address concerns, providing personalized product recommendations and skin care routines. Yet, makeup brands can also build AI advising into users’ DNA, as did NYX in partnership with Snapchat earlier this year.
Virtual and Interactive Try-ons, Hyper-personalization, Adaptive, Data-driven
MM: The beauty industry is embracing digital technologies such as AI, AR and data analytics. AI is being used to create personalized skin care routines and product recommendations, while AR enables virtual try-ons. The rise of AI, in particular, is crucial as consumers demand hyper-personalized products. NINU capitalizes on this trend by offering personalized fragrances that adapt to individual body chemistry using AI algorithms, making it highly relevant to current consumer needs.
AI and personalization are trending due to the demand for tailored experiences, and digital technologies provide a more interactive, engaging and data-driven approach to beauty.
Generative and Conversational AI, Zero- and First-party Data, Intuitive Experiences
What sets this new wave of technology apart is the ability to harness zero and first-party consumer data. This data offers brands a profound understanding of their audience, empowering them to create hyper-personalized experiences that go beyond generic recommendations."
IM: As consumers’ beauty and personal care needs continually evolve, digital technologies like AI, AR and now Generative AI are transforming the way brands and retailers engage, connect and build lasting relationships with their customers. AI and AR have long been at the forefront of personalization, enabling innovations such as skin analysis, virtual try-ons and virtual shopping assistants to deliver tailored product recommendations and personal care solutions that align with individual goals. Solutions like Revieve’s beauty tech platform leverage advanced machine learning algorithms to analyze consumer data and try-on insights, crafting in-depth, customized skin care and beauty routines.
The recent emergence of Generative AI is pushing these advancements even further. By integrating Conversational AI and Generative AI, brands can provide real-time guidance, product education and inspiration-driven shopping experiences that elevate consumer engagement. Generative AI blends different beauty elements — skin care, makeup and fashion — into a unified experience, creating a truly immersive and personalized beauty fusion.
What sets this new wave of technology apart is the ability to harness zero and first-party consumer data. This data offers brands a profound understanding of their audience, empowering them to create hyper-personalized experiences that go beyond generic recommendations. By leveraging these insights, brands can tailor solutions to meet the specific needs, preferences and aspirations of their consumers, helping them stand out in an increasingly competitive landscape. These innovations bridge the gap between physical and digital realms, allowing consumers to experience a more customized, educational and engaging beauty journey that continues to evolve with them.
As the beauty and personal care industry embraces these technologies, consumers can look forward to a future where their interactions with brands feel more intuitive, immersive and intimately aligned with their unique needs and desires.
Personalized Care and AI, AR and At-home Devices
NH: In our experience, innovation and technologies often emerge to serve the needs and wants of the consumer. Recent technology trends are no different. Personalization has been a key topic for the beauty and personal care markets for nearly a decade, and the technology enabling personalized experiences is finally catching up to the desires of the consumer. The modern consumer understands their skin conditions better than any generation before them, and they want to know what works, how it works and how it's tailored for their skin.
This has led to the adoption of several emerging technologies by the beauty market, such as AI, AR and regulatory-approved "at home" versions of equipment often found in aesthetic and dermatology clinics.
C&T: How are beauty consumers using digital technologies?
Convenience, Predictive Efficacy
AG: Let’s take AI Skin Analysis technology, for example. Users can simply take a photo of their skin using their personal devices — something as accessible as their smartphone — and receive a comprehensive analysis. The algorithms, trained on vast amounts of scientific data, can assess everything from pore levels to fine lines and wrinkles. Based on this data, users get tailored product recommendations that match their specific skin profile. The beauty of it is that this personalized experience doesn’t require a trip to the store; it’s all done from the comfort of home, as long as [the user has] a camera, which is hardly a barrier nowadays.
In a similar way, GenAI is transforming skin care try-ons. With just one picture, consumers can now see realistic predictions of how their skin will evolve over time if they use certain products. It’s a game-changer because it allows them to make an immediate and informed decision about whether a product is worth the investment — all from their personal device.
Self Exploration, Digital Consultation
SC: Imagine stepping up to an AR mirror, where the magic of augmented reality brings products and surrounding space to life. These mirrors are not just reflective surfaces; they are portals to brand interaction, sparking a sense of inclusion into the brand history. Users are left in awe as they go through virtual transformations, interactions and a kaleidoscope of creative possibilities in their power to control.
Imagine, you could become the face of one of the largest brands in the world as you are gracing their billboard; imagine your favorite celebrity makeup artist could do your makeup; imagine you can change your outfit just in one swipe; imagine you could create and interact with a magical virtual universe without leaving reality.
But the journey doesn’t stop there. With the rise of virtual try-on technology and AI advising, consumers are empowered by having a personal beauty consultant at their fingertips, guiding them through an exquisite array of products tailor-picked for them. Today’s technology allows for deeper self-exploration and solution-finding, instilling confidence in users as they make more informed decisions.
Through the integration of advanced AI and AR experiences, customers now have access to virtual skin care, makeup and hair care advisors that not only guide them, but provide real-time, in-depth insights about their unique needs and preferences."
Virtual Try-on, IoT Personalization, Social Media and Tracking Use
MM: Beauty consumers use digital technologies in various ways:
- Virtual try-ons: AR technology allows consumers to try makeup, hair styles or skin care products virtually without physically applying them.
- Personalized recommendations: AI-powered tools analyze skin type, preferences and concerns, offering tailored product recommendations.
- Smart devices: Internet of Things (IoT)-based beauty devices like NINU's smart perfume allow users to personalize their fragrance experiences through smartphone apps. Other examples include skin care tools that analyze hydration levels or skin conditions and offer recommendations.
- Social media and influencers: Consumers engage with beauty brands through social media platforms where influencers often demonstrate product use or offer recommendations.
- Tracking use: Smart packaging can track usage, remind users to replenish products and even adjust settings based on patterns of use (e.g., NINU adjusting fragrance).
Omnichannel Experiences, Real-time Advice, Increased Conversion Rates, Predicting Trends
IM: Beauty consumers today are increasingly turning to digital technologies to enhance their experience and make informed decisions about cosmetic and personal care products. These innovations have transformed the way people explore beauty, bringing personalization, convenience and creativity to the forefront. Through the integration of advanced AI and AR experiences, customers now have access to virtual skin care, makeup and hair care advisors that not only guide them, but provide real-time, in-depth insights about their unique needs and preferences.
One standout feature is the ability for consumers to virtually try on products before making a purchase. Tools like “Shop My Look,” developed through partnerships like Revieve and Google Cloud, allow users to preselect their desired looks and try them on virtually, whether they’re seeking a bold evening look or something more natural. This immersive experience lets customers experiment with different styles, from makeup to skin care routines, and adjust their choices based on their personal preferences. What used to require physically visiting a store is now available at their fingertips.
Brands and retailers can leverage this technology to tailor their product offerings, drawing from rich zero- and first-party data. With access to these insights, they can provide hyper-customized product recommendations based on each consumer’s skin type, preferences and beauty goals. Imagine a skin care advisor that, after analyzing your skin through a simple selfie, recommends a personalized routine addressing your specific concerns, whether it’s anti-aging, hydration or acne. These technologies not only improve the customer experience, but also increase conversion rates, as consumers feel more confident purchasing products tailored specifically to them.
Moreover, this wealth of data helps brands stay ahead of consumer trends. By analyzing patterns in what consumers are searching for or virtually trying on, companies can quickly adapt and recommend the best products for each shopper. For example, they can identify seasonal trends, like more dramatic makeup looks leading up to the holidays or a spike in demand for sun care products during the summer months. This ability to deliver timely, relevant recommendations builds trust and loyalty with consumers.
These technologies create an omnichannel beauty experience that integrates online shopping, in-store visits, and virtual interactions into a seamless journey. Consumers can begin their search for a new skin care routine online, try it out virtually, and then head to a store to make the final purchase — all while receiving personalized recommendations every step of the way.
Ultimately, the combination of virtual try-ons, digital skin care and hair care advisors, paired with AI-powered insights and consumer data, not only enhances the shopping experience, but also empowers consumers to make informed decisions. By giving them the tools to explore products in a highly personalized and interactive way, these technologies are shaping the future of beauty, where every customer’s experience is unique, immersive and data driven.
Ultimately, the combination of virtual try-ons, digital skin care and hair care advisors, paired with AI-powered insights and consumer data, not only enhances the shopping experience, but also empowers consumers to make informed decisions."
AI-driven Recommendations, AR as the ‘Norm,’ At-home Devices to Enhance Experiences
NH: In today’s beauty scene, several exciting technologies are saying the market's hunger for personalized solutions. A clear standout, AI has become the new focus of both the industry and consumers by offering personalized skin care recommendations. Many consumers are tracking the health of their skin and AI skin analysis tools give them a simple yet powerful way to better understand their skin progression. AI is not replacing Beauty Assistant (BA) at the beauty counter; rather, it is providing a powerful tool that allows each BA to provide their customers with personalized recommendations and tailored beauty routines. Within beauty and personal care, AI is still in its infancy. It's an exciting time to track the future of AI as it becomes more embedded into the beauty market.
There are two other innovations worth noting. Augmented Reality (AR) was an earlier trend that allowed consumers to try on makeup virtually before buying. While this innovation is no longer the most hyped topic, it's important to note that AR has permeated every beauty counter globally to shift from a trend to a norm.
Finally, a new suite of regulatory-approved technology solutions for use at home, such as LED masks and facial lasers, allows for a whole new realm of possibilities for consumers developing their daily or weekly skin care routines. These technologies continue to trend because they enhance the in-store and at-home experience, making it more fun and relevant to consumer needs.
Editor’s note: Continue to Part II to explore the untapped potential and outlook for digital tech in beauty to advance product development.
References
1. Bain & Co. (2024, Sep 25). Market for AI products and services could reach up to $990 billion by 2027, finds Bain & Co.’s 5th annual Global Technology Report. Available at https://www.bain.com/about/media-center/press-releases/2024/market-for-ai-products-and-services-could-reach-up-to--$990-billion-by-2027-finds-bain--companys-5th-annual-global-technology-report/
2. Nayak, B.K. (2023, Oct 6). The Digital Renaissance: How technology fuels creativity in the modern age. Available at https://medium.com/bkcreatives/the-digital-renaissance-how-technology-fuels-creativity-in-the-modern-age-fb7b184a4e91