As AI continues penetrating and transforming industries, its effect is starting to be felt in the beauty industry. From major cosmetic brands to social media influencers, AI is reshaping customer experiences and personalization. 

The AI-driven beauty and cosmetics market is experiencing explosive growth, rising from $3.27 billion in 2023 to a projected $3.97 billion in 2024, reflecting a compound annual growth rate of 21.5%. 

This rapid expansion is fueled by advancements in personalized beauty recommendations, virtual makeup tools, and enhanced customer engagement driven by AI and social media influences.

The market is set to soar further, reaching $8.1 billion by 2028 with a CAGR of 19.5%. Key trends expected during the forecast period include color-matching technology, virtual try-on tools, personalized beauty recommendations, AI-powered chatbots for customer support, and AR-driven beauty content creation.

However, alongside these advancements, technology also significantly influences women’s self-perception and modern beauty standards.

ADVANCEMENTS IN ORGANIZATIONS

AI-powered beauty and cosmetics companies are embracing new technologies to maintain their competitive edge.

Last year, Estée Lauder launched its Voice-Enabled Makeup Assistant, which uses AI to guide users in applying makeup by detecting coverage and offering real-time application feedback.

In 2018, L’Oréal acquired ModiFace, an AI-driven virtual try-on tool available on Nykaa’s platform. It provides highly realistic makeup simulations using AR and offers real-time shade calibration based on AI analysis of product information and social media trends.

Olfa Messaoudi, Chief Digital and Marketing Officer of L’Oréal Middle East, emphasizes that AI and AR are more than just industry trends—they’re transforming how brands engage with consumers on a highly personal level. AI and AR can analyze millions of data points to accurately predict skin types, preferences, and even potential skin concerns.

“We’re talking about hyper-personalized recommendations, where a simple selfie transforms into tailored skincare solutions. Pair that with AR platforms like Modiface, and we’re giving consumers the power to virtually try on makeup or experiment with new hair colors, from the comfort of their phone or via smart mirrors in-store,” Messaoudi states.

“This blend of AI and AR isn’t just tech—it’s about creating beauty experiences as unique as each individual,” she adds.

Similarly, Alice H.Chang, CEO of Perfect Corp, says AI and AR are revolutionizing personalization in the beauty industry.

“In the past, personalization was limited by factors such as physical store locations and the need for in-person consultations. With AI and AR, brands can now instantly offer highly tailored experiences to customers on a massive scale and from almost anywhere.”

Chang highlights how AI improves the shopping experience by offering virtual try-on features, allowing customers to try out different products and styles without the commitment of a purchase. She points to Perfect Corp’s AI Makeup Transfer solution, which lets users instantly apply makeup looks to their faces with photos.

“This provides users unlimited freedom to try the looks they want, rather than being limited by the availability of virtual filters. It also carries the added benefit of reducing product returns and increasing customer satisfaction.”

WOMEN’S PERCEPTION OF BEAUTY

With the spread of AI in the beauty industry comes its widespread use in everyday beauty filters and social media trends. 

These filters use machine learning and computer vision to map facial features and apply effects like smoothing skin, contouring, resizing features, or adding virtual makeup. Advanced filters can even adjust lighting and color to mimic professional photography.

In February 2023, TikTok introduced its Bold Glamour filter, which quickly gained attention. 

This filter uses sophisticated AI to dramatically alter users’ appearances, reshaping facial features such as the chin and nose, whitening teeth, and brightening eyes. Many users report becoming nearly unrecognizable when using it.

Sarah Ibrahim, 20, feels AI has deeply influenced various aspects of her life, especially on social media. She notes its presence on her feed, particularly with the beauty influencers she follows.

“You can clearly see AI’s impact on how beauty influencers market themselves, from beauty filters to AI trends like the high school picture generator trend,” says Ibrahim, referring to a social media trend where influencers use AI to transform their photos into high school-themed portraits based on specific prompts.

“These tools don’t just create images based on a prompt—they also smooth your skin, brighten your complexion, fix your hair, and transform you into an unrealistic version of yourself,” she explains.

Ibrahim notes that these filters and tech have had a noticeable impact on her self-confidence. “You start to forget what real bodies and natural skin texture look like. It makes you feel like you’re the only one with these completely normal features. It made me feel isolated and ugly.”

Not only can AI negatively impact women’s perception of themselves, but things like image generation are less efficient with certain ethnicities and can perpetuate stereotypes or biases.

Chang says there are legitimate concerns about AI’s potential to reinforce or perpetuate stereotypes. She emphasizes the importance of diverse datasets in training AI models to prevent unintentional bias.

“At Perfect Corp, we are committed to addressing these concerns and ensuring that our AI algorithms are inclusive and unbiased, ensuring that our datasets are representative of a wide range of skin tones, facial features, genders, ages, and ethnicities while also continuously monitoring our algorithms for any signs of bias.”

Messaoudi says L’Oreal is aware of the concerns surrounding bias and representation. “We’re deeply aware that technology, if not handled responsibly, can perpetuate stereotypes or marginalize certain groups.

In addition to using diverse data encompassing various skin tones, facial structures, and beauty preferences, Messaoudi mentions that L’Oreal partnered with experts to audit their algorithms, ensuring they align with the brand’s inclusivity.

“It’s about more than avoiding bias—it’s about empowering every individual to feel seen and celebrated.”

THE FUTURE OF AI IN BEAUTY

“I’m sure things will take a turn for the extreme with every AI advancement. We’re already seeing scary progress and the constant raising of beauty standards, but beauty influencers and cosmetic brands are responsible for utilizing these technologies responsibly,” Ibrahim says.

She emphasized the importance of having disclaimers when using these filters to ensure that biases or racist stereotypes are not perpetuated and to take every step towards technological advancement with caution, always keeping the human element in mind.

Looking ahead, Messaoudi says AI and AR will take personalization even further. “Imagine AI not just analyzing your skin, but predicting long-term skin health or recommending sustainable refillable products to reduce your environmental footprint.”

She notes that AR will make online shopping more immersive, offering virtual consultations replicating the in-store experience.

Chang believes the future of AI and AR in the beauty sector will create a win-win scenario for mass consumers and brands. “By delivering personalized experiences, the technologies enhance consumer purchase confidence while concurrently assisting brands improve their sales conversions.”

As technology advances, AI and AR could enable even more immersive beauty shopping experiences, personalized recommendations, tutorials, and more. 

“We are excited to be at the bleeding edge of AI and AR technology that will continue to shape the beauty industry and enhance the customer experience.”