Artificial intelligence is no longer just automating retail, but it’s learning to understand intent, emotion, and cultural nuance. In the beauty sector, where decisions are deeply personal, this evolution is redefining what personalization really means.

As beauty retail moves into this next phase, the focus is shifting from efficiency to empathy. AI is also being used to interpret needs, routines, and cultural habits—bridging the gap between digital precision and human understanding. For brands, this means rethinking how technology supports, rather than replaces, the advisory role that defines beauty experiences.

For Nicole Nitschke, Managing Director of Faces, the shift marks a move from reactive algorithms to anticipatory guidance. “The next phase of AI is about understanding intent and context rather than simply reacting to clicks or past behavior,” she says. “In beauty retail, that means creating guidance that feels anticipatory, empathetic, and deeply helpful.”

FROM AUTOMATION TO INTUITION

Faces’ approach to AI reflects a broader industry trend: using data not just to predict, but to understand. The company’s AI-powered beauty coach, Layla, which debuted in October, offers a glimpse into how technology can make retail experiences feel more intuitive.

Layla provides beauty guidance across skincare, makeup, and fragrances in a way that reflects regional routines and linguistic nuance. Nearly 80% of user interactions happen in Arabic—a figure Nitschke says underscores the importance of local context in building meaningful digital experiences.

She describes Layla’s role as a “trusted advisor and coach” that extends across touchpoints. “AI should simplify decisions and bring clarity across online and offline experiences,” she explains. Faces is now expanding Layla’s capabilities to integrate with stores, allowing beauty advisors to access real-time insights into customers’ routines and preferences.

PERSONALIZATION THAT FEELS HUMAN 

AI-driven personalization can risk feeling mechanical or impersonal. For Faces, avoiding that trap means grounding technology in empathy. “We know that beauty decisions are deeply emotional and personal. Our goal with AI is to replicate the empathy, expertise, and intuition that a skilled beauty advisor brings in-store,” Nitschke notes. 

Layla is designed to recognize emotional cues and contextual signals—such as tone and phrasing—to respond in ways that feel natural. This emotional layer, Nitschke argues, is essential to creating digital interactions that feel human.

Bringing Layla in Faces stores, can help beauty advisors better know and understand customers, providing real-time insights on preferences, past interactions, and routines. “By combining behavioral insights with emotional intelligence, every interaction—online or in-store—feels like a trusted beauty companion who understands not just what a customer wants, but why,” she says.

WHY THE GCC IS LEADING INTELLIGENT RETAIL 

The GCC has become a proving ground for AI innovation, driven by a combination of government policy, investment appetite, and consumer openness to digital experimentation. “The GCC is uniquely positioned to lead in intelligent retail because it combines a tech-savvy population, ambitious digital transformation agendas, and retail operators willing to invest in innovation at scale,” says Nitschke.

Consumers in the GCC tend to adopt digital solutions quickly, enabling brands to test and refine new models more quickly. This dynamic, Nitschke says, creates the conditions for AI-led retail to evolve in a way that is both technologically advanced and culturally grounded.

EMOTION, CULTURE, AND DATA

At the stores, technology is viewed as an enabler of cultural relevance rather than a replacement for human expertise. “not replace human connection. That’s why every AI initiative, including Layla AI, is designed to reflect the cultural and social nuances of the GCC,” Nitschke says. Layla, she adds, has been trained in the same tone and vocabulary as Faces’ in-store advisors or the assistants to ensure consistency across channels.

Data, meanwhile, serves as the foundation for decision-making across the business—from customer engagement to inventory management. “We treat data as a strategic asset,” Nitschke explains. “It allows us to move beyond intuition and anecdote, providing clear insights that improve both operational efficiency and the customer experience.”

As AI continues to permeate retail, the question becomes less about what technology can do and more about how it should behave. For Nitschke, success in AI-powered retail depends on balance. She says that efficiency, creativity, and emotional connection all matter. 

“Efficiency is important to ensure seamless, accessible, and timely experiences,” Nitschke says.

She adds: “Creativity allows us to inspire customers, present beauty in engaging ways, and differentiate the brand. Most importantly, emotional connection ensures that every interaction feels personal, expert-led, and culturally relevant.”

In a market defined by rapid digital adoption and cultural specificity, that balance—between intelligence and empathy, automation and understanding—may determine how retailers define the next era of customer experience.

Nitschke will be speaking at the Retail World Forum. Reserve your spot here.