Artificial intelligence imagines brave new world for personal care and beauty
Artificial intelligence (AI) will transform ingredient and product formulation in the personal care and beauty industry. AI systems will also revolutionize brand-consumer engagement through hyper-personalized marketing and interactive content, but cosmetics brands should use new technology to enhance rather than replace human interaction.
Innova Market Insights named “Customizing the Canvas” as a leading personal care trend. The global market researcher says brands are using AI to hyper-personalize their products and attract greater consumer interest. For instance, AI skin assessment apps and tools help create personalized skin and hair care recommendations for shoppers.
Personal Care Insights explores the emergence of AI systems in the personal care and beauty industry with Joshua Britton, founder and CEO of biotech company Debut, and Sampo Parkkinen, CEO of personalized digital brand experience firm Revieve.
AI-powered ingredient discovery
AI systems hold unprecedented potential for the cosmetics industry in reimagining ingredient discovery. Currently, most manufacturers approach ingredient discovery by screening large data libraries. For Britton, this process is “highly inefficient” as it roughly accounts for 0.0002% of potential ingredients.
Debut’s AI platform, BeautyORB, screens a potentially limitless quantity of ingredients — upward of 50 billion. Its AI-powered ingredient discovery has already helped address inflammaging and epidermal barrier repair issues.
“Debut uses BeautyORB to discover and create novel ingredients in record time thanks to computational compound prediction, cutting out years from the innovation cycle and enabling us to access ingredients no one has ever seen before for use in personal care and beauty formulations,” he tells us.
AI platforms can empower cosmetics manufacturers to unlock ingredients that remain hidden in nature.“AI allows us to screen and scan billions of ingredients that we haven’t found in nature yet to ensure the largest pool of top-performing ingredients. Without AI, we would have to do what other ingredient providers do, which is to simply scan existing ingredients.”
“We explore and modulate specific areas of skin biology while discovering new cellular pathways, bringing real innovation and differentiation to brands. Our processes enable us to invest in creating two new ingredients per year to drive product innovation to new levels faster and at a lower cost.”
Debut anticipates moving from consumer insights to formulated and clinically verified ingredients in 18 months. BeautyORB can also help deliver ingredient formulations specific to different geographies and at an unparalleled speed.
The medicalization of beauty
The diversification of innovation and scientific creativity in beauty and personal care is rapidly accelerating. AI systems can support the development of breakthrough ingredients with improved clinical performance.
“Brands will no longer be on the ingredient merry-go-round differentiated only by concentration and marketing,” says Britton.
He explains that the cosmetics industry is witnessing a growing convergence between pharmaceuticals and beauty that is delivering the targeted responses brands seek. Beauty ingredient manufacturers can use the same technology that pharmaceutical companies employ to fight disease.
Debut’s DermCeuticalPro collection — discovered through AI — was developed in controlled, pharma-like lab conditions and delivers bio-based ingredients with over 99% purity. The collection is a notable example of the increasing medicalization of beauty.
Brenntag Specialties and biotech firm Cambrium recently produced an AI-inspired collagen for the European market.
AI systems advance the medicalization of beauty through which ingredients deliver better clinical performance.
Biotech beauty innovation
Beauty product manufacturers can also take inspiration from how the pharmaceutical industry has embraced AI for compound predictions and fast-tracked breakthrough cures. Britton expects that, over the next five years, the current set of active ingredients in personal care will become obsolete, and new AI-driven ingredients will enter the mainstream.
“AI, biotechnology, and computational biology will transform the world of beauty and personal care. The next generation of biotech ingredients will impact skin most heavily as it is such a performance-driven category,” he explains.
“Then, hair, color cosmetics, and nutrition will be impacted due to the more complex biological models and regulatory landscapes.”
“After that, we will see biotech enter OTC beauty to provide solutions for acne, eczema, and dandruff. The combined forces of AI and biotech herald a brand-new world in beauty.”
L’Oréal recently partnered with IBM to develop a custom generative AI model used to accelerate cosmetics formulations. Likewise, IFF leverages qualitative consumer data through a new AI-driven app that collects real-time consumer feedback for improved fragrance innovation.
Meanwhile, Florida International University and the University of Miami, US, introduced an AI-powered tool to classify skin tones with improved accuracy.
AI retail and human interaction
Cosmetics brands increasingly harness the power of AI for next-generation consumer marketing. Parkkinen at Reveive recommends brands explore personalization, hybrid customer service, interactive content, and virtual try-ons.
He also warns beauty businesses to avoid becoming overly-reliant on AI systems: “The key is to use AI and AR (augmented reality) as enhancements, not replacements — for human interaction.”
Gen Z consumers embrace AI-driven retail but value authentic customer service and experiences.
“Brands can strike the right balance by using AI for virtual skin care consultations, smart product recommendations, and real-time ingredient education — but allow customers to connect with a real expert for more complex concerns.”
“Many brands are bridging the gap between digital and physical retail by offering AI-powered virtual try-ons in stores, followed by expert guidance from beauty advisors.”
Meanwhile, generative AI is revolutionizing packaging design, according to Tey Bannerman, partner at McKinsey & Company. He also suggests that AI holds the power to enhance rather than diminish the role of human creativity, but only if used correctly.
The Gen Z effect
Generation Z — the personal care industry’s “digital natives” — are more prone to engage with AI platforms and tools. However, they also value authenticity and personalized, human customer service when required.
“While chatbots and AI assistants are useful, many Gen Z shoppers still prefer human interaction for high-stakes beauty decisions,” Parkkinen tells us.
“Offering both options ensures a seamless experience. Instead of purely algorithm-driven marketing, successful brands integrate real people — dermatologists, estheticians, or relatable influencers — into AI-driven experiences to maintain authenticity.”
“AI should enhance convenience and engagement, but brands that balance automation with human expertise and authenticity will win Gen Z’s trust.”
Revieve recently released The Gen Z Effect Report — a study highlighting how the youngest generation of beauty shoppers influences the industry.
The research found that Gen Z consumers do not buy beauty products the same way older consumers do. Instead, they are actively shaping brand narratives through co-creation, social media engagement, and accountability due to their digital lifestyles and greater demand for transparency.
