By Abdul-Karim Ngoliba

AI-driven marketing tools are expected to influence up to 70% of customer interactions in beauty by 2027

The AI in Beauty & Cosmetics market is valued at US$4.4B in 2025, with projections pointing to nearly US$9.44B by 2029

The beauty industry is pivoting. Traditional marketing like glossy billboards, celebrity endorsements, magazine spreads are being upended by algorithmically-powered strategies. Brands are increasingly relying on AI personalization, big consumer data analysis, and retail experimentation to build precision campaigns that resonate and better meet the sophisticated needs of clients. With AI expected to power up to 70% of customer interactions by 2027, and the market already valued at $4.4 billion in 2025, the industry is entering an era where technology and culture intersect more tightly than ever before.

Why This Matters: The cultural currency of beauty has always been built on aspiration but now, personalization is the new luxury. Consumers, especially Gen Z and millennials, are pushing brands to go beyond aspirational ads and deliver personalized experiences that speak directly to their needs. In fact, while around a third of global consumers look to influencers for beauty ideas, this number has declined in the US, China and Europe from 33 percent in 2023 to 25 percent in 2025. According to industry reports, AI in the Beauty & Cosmetics sector is already valued at around US$4.4 billion in 2025, with projections aiming for about US$9.44 billion by 2029. These figures aren’t just about cash, they reflect shifting culture. Customers are tired of one-size-fits-all; they want beauty that listens.

At the same time, retail is being reimagined through AI-powered kiosks, virtual try-on apps, and augmented reality (AR) shopping. These innovations not only improve convenience but also tap into cultural shifts toward digital self-expression. This evolution reflects a deeper cultural truth: today’s consumers want brands that “see” them not just sell to them. AI allows beauty players to listen at scale and turn that data into meaningful, personalized touchpoints.

What’s Next: The rise of AI in beauty comes with both promise and responsibility. Consumers are increasingly aware of how their data is being used, and brands that fail to address privacy and transparency risk losing trust. Furthermore, AI systems trained on biased datasets could replicate long-standing inequities in product availability and representation, particularly for diverse skin tones and hair types.

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