| Abstract | This thesis explores the transformative role of Artificial Intelligence (AI) in the beauty industry,
particularly in shaping data-driven decisions. AI's integration into the beauty sector has
revolutionized both consumer experiences and operational processes. Key applications include
personalized product recommendations, virtual try-on tools, and advanced customer service
through AI-driven chatbots. These technologies allow brands to analyse consumer data more
accurately and offer tailored beauty solutions, enhancing customer satisfaction and reducing
return rates.
Moreover, AI's role extends to operational efficiencies, with predictive analytics optimizing
inventory management and supply chain logistics. This minimizes waste, reduces costs, and
ensures sustainability—a growing priority for beauty brands. AI's potential future impact on the
industry includes enhancing sustainability efforts, reducing the use of harmful chemicals, and
improving packaging through eco-friendly designs.
While AI brings many advantages, the thesis also addresses challenges such as data privacy,
algorithmic biases, and the high costs of AI implementation for smaller brands. Nonetheless,
AI's continued evolution promises to further personalize beauty experiences, making them more
accessible and efficient.
This thesis looks at three significant players in the cosmetics business: Proven, Perfect Corp.,
and L'Oréal. It focuses on how each has effectively used AI into their daily operations. The
study investigates how these businesses have used AI to encourage innovation, disrupt
conventional business models, and improve customer experiences through in-depth case
studies. The usage of AI in virtual try-ons by Perfect Corp, AI-driven skincare personalization
by Proven, and personalized beauty suggestions by L'Oréal are examined to show how these
businesses are spearheading the digital transformation of their respective industries. Every case
emphasizes how their competitive edge and continuous success are largely due to their strategic
application of AI. |
