Beauty Meets Intelligence: The AI ​​Revolution in the Cosmetic Industry

A few weeks after our first masterclass on "AI at the service of business" coordinated by Ye Seul Kim, Bullo and Lazzini, LFM University began releasing a series of update articles on the various applications of AI in various sectors, to help better understand the phenomenon and explore its various opportunities. Today we will discuss AI in the beauty world, an industry that LFM Spa, having worked over the years with well-known brands such as Nivea, Vichy, Schwarzkopf and many others.

The world of beauty is constantly evolving, and artificial intelligence (AI) is playing a key role in driving this transformation. The collaboration between Estée Lauder and Perfect Corp. is a prime example of this, demonstrating how AI can be used to improve customer experience, make makeup accessible to all and push the boundaries of creativity in product design. Let's take a closer look at the case together and explore how different types of AI technology such as: facial recognition, machine learning, deep learning and AR have been able to elevate the customer experience, creating a seamless experience and at the same time nurture greater innovation, customization and accessibility of products.

The two leading companies

In the digital beauty landscape, two giants emerge as protagonists of the anal house scene: Estée Lauder Companies Inc. and Perfect Corp.

On the one hand, we have Estée Lauder, a prestigious American multinational in the cosmetics industry, known for its wide range of products ranging from makeup to skin care, from perfumes to hair products. Its legacy is intertwined with excellence, quality and innovation, maintaining an enviable reputation in the beauty industry for decades.

On the other hand, we meet Perfect Corp., a provider of innovative technological solutions in the field of beauty and fashion. Operating as a SaaS (Software as a Service) company, Perfect Corp. stands out for its expertise in artificial intelligence and augmented reality, creating digital bridges that connect brands and consumers in interactive and engaging ways. Its platform, integrating AI and AR, offers revolutionary solutions that push the boundaries of customer experience in the digital age. We understand better now how the two companies interacted to create innovative solutions.

Virtual Test: Accessible Anywhere, Anytime

Thanks to the combination of AI and AR (Augmented Reality) technologies, Estée Lauder has made it possible for customers to virtually try different shades of makeup, at any time and from anywhere through the "youCam Make up Vitual try on solution". With the help of Perfect Corp.'s AI, the virtual lip and foundation try-on feature not only increased conversions but also strengthened long-term customer loyalty by eliminating the need for beauty consultants and physical sampling. According to statistics published by Perfect Corp, AI significantly increased conversion by 67% and also increased the time spent on the Estèè Lauder website by 2.5 times!

Solutions to make beauty accessible to all

But the AI ​​applications don't end there for Estée Lauder.

Estée Lauder's vision of making the beauty industry accessible to all has found expression in the creation of a revolutionary app aimed at users with visual impairments. This app, known as Voice-enabled Makeup Assistant (VMA), represents a leap forward in the fusion of technology and beauty, aiming to provide practical and interactive guidance during makeup application.

Estée Lauder's VMA app has been described as the first of its kind, using both augmented reality (AR) and artificial intelligence (AI) to analyze makeup on the user's face and provide audio feedback on which areas need of retouching or mixing (here you can find further information)

Developed with machine learning technologies, the VMA app uses smart mirror technology, powered by Estée Lauder's augmented reality and artificial intelligence capabilities, to assist the visually impaired community in applying makeup more easily.

Launching in the UK and Ireland in January 2023, Estée Lauder's ambition for the VMA app is to help visually impaired users apply make-up more easily and safely, helping to close the accessibility gap in the the beauty industry.

Innovative Products: Customization at the Center

Customization is the new frontier of cosmetic product design. By analyzing customer data and preferences, Estée Lauder uses AI to develop new skincare and fragrance products. One example is the “fragrance recommendation system” launched in China, which offers personalized AI-based suggestions, taking personalization to a new level.

There's no doubt that customers love physical stores, but at the same time, AI takes the experience to the next level, allowing them to experiment with styles effortlessly. Brands benefit too, as AI reduces costs, tracks trends and informs product strategies. Virtual trials also increase brand awareness and engagement, as satisfied customers share their experiences, attracting new audiences and improving brand loyalty.

Besides Estèe Lauder there are other brands that are making important steps in the AI ​​of the Beauty world

The involvement of beauty industry giants such as Estée Lauder in the field of artificial intelligence (AI) marked the beginning of a new era of innovation. However, I am not alone. Other renowned brands such as Sephora and Elizabeth Arden are also navigating the sea of ​​digital technology to elevate their customers' experience and revolutionize the product development process. These shared efforts highlight a growing trend towards the adoption of AI solutions in the beauty industry, each with a unique and exciting approach.

Sephora: The Virtual Artist

Sephora, one of the best-known beauty retail chains, has introduced the "Sephora Virtual Artist", an application that uses AI and augmented reality (AR) to allow customers to virtually try on makeup products. This technology allows customers to visualize how they would look with different colors and styles of makeup without having to physically apply it, offering an interactive platform to explore new looks and products.

Elizabeth Arden: Reliving the Past through AI

Elizabeth Arden has launched a virtual store, built by experiential e-commerce company Obsess, that uses generative AI to create marketing images. The virtual store, inspired by the historic Elizabeth Arden salon on Fifth Avenue, features product information and a mini online museum on the brand's history. IT'S AT. adopted a nostalgic approach to artificial intelligence, AI was in fact used to improve and edit historical images of the brand, creating new visual assets. This initiative certainly aims to wink at younger consumers and experiment with new ways of shopping, with an initial launch phase in the United States, followed by expansion into other countries. If you want to learn more about this last case, you can find the in-depth link here.




See you again in two weeks with another AI business case. Stay tuned!