Genesis: Human Experience in the Age of Artificial Intelligence

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Genesis: Human Experience in the Age of Artificial Intelligence

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By

Luke Soon

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AI Agents are Beautifying the Future

The health and beauty industry, valued at over $677 billion globally, is fiercely competitive, with players like L’Oréal, Procter & Gamble (P&G), Estée Lauder, Johnson & Johnson (J&J), Shiseido, and retailers like Sephora leveraging agentic AI to drive personalisation, efficiency, and innovation. Agentic AI expands beyond basic automation to autonomous agents that handle complex workflows, such as predicting trends, optimising formulations, and creating hyper-personalised services. This broadens use cases from cost reduction (e.g., 20-50% in supply chains) to revenue growth through novel experiences, like AI-driven virtual consultations or 3D-printed custom products. In a sector where consumer demands for sustainability, inclusivity, and wellness converge, AI agents enable rapid adaptation, with McKinsey noting that beauty brands scaling gen AI in 2025 could achieve 30-50% faster innovation cycles.

Challenges include data privacy (e.g., J&J’s Neutrogena Skin360 biometric settlement) and ethical AI use, but benefits like reduced waste and targeted marketing outweigh them. The health and beauty sector’s competitive landscape is intensifying, with AI agents enabling brands to differentiate through hyper-personalisation, sustainability, and operational agility. Beyond core competitors like L’Oréal and P&G, retailers such as Sephora and Ulta Beauty are leveraging AI for omnichannel experiences, while emerging players like Haut.AI focus on diagnostics. Broadened use cases include AI for microbiome modulation (e.g., prebiotic skincare), ethical sourcing optimisation, and bias-free inclusivity in product testing, addressing diverse skin tones and ancestries. In a market projected to grow at 6.3% CAGR to 2028, AI drives 15-40% reductions in returns via virtual simulations and supports regulatory compliance under frameworks like the EU AI Act.

This expansion fosters collaborative ecosystems, where AI agents integrate with IoT for real-time consumer feedback loops, enhancing loyalty in saturated markets.

Enhanced Details on New Product and Service Creation Using AI

AI agents streamline new product/service creation by leveraging predictive modeling, generative algorithms, and data synthesis to cut development cycles from 12-24 months to weeks, with accuracy rates exceeding 90% in property predictions. Processes involve analyzing ingredient databases (e.g., PubChem), simulating interactions, and iterating based on consumer data, enabling sustainable, personalised offerings like bio-based fragrances or microbiome-targeted serums. Services evolve into AI-powered ecosystems, such as subscription-based personalised regimens or AR-enhanced consultations, boosting retention by 20-40%.

  • Product Creation Processes: Agents employ ML for de novo molecule design, stability forecasting, and sensory optimisation. For surfactants, GANs predict CMC and biodegradability; for fragrances, GNNs generate novel scents from emotional profiles. mdpi.com Integration with genomic data creates custom formulations, reducing waste by 50% through virtual trials.
  • Key Benefits and Metrics: Yields 20% cost reductions in ingredients, 80% faster R&D, and 4x quicker molecule creation. Supports eco-innovation, with 90%+ accuracy in antioxidant predictions.
  • Examples Across Competitors:
    • Estée Lauder: Collaborates with OpenAI for custom GPTs in product development, analysing archives for new concepts; partners with Microsoft for gen AI in trend forecasting and SEO-optimised content, accelerating launches by 30%.
    • Shiseido: VOYAGER platform with Accenture uses AI for rapid makeup/skincare formulation, clustering perfumes by attributes; AI Makeup Advisor analyzes selfies for personalised services, cutting development by 40%. beautymatter.com +1
    • Johnson & Johnson (Neutrogena): AI for 3D-printed supplements and Skin360 app creates custom skincare via scans; predicts treatment outcomes like wart responses (AUC 0.902), enabling personalised services.
    • Sephora: Pocket Contour and Virtual Artist generate AR try-ons and regimens; AI analyses 89,969 skin tones for shade matching, informing in-house product creation with 20% sales uplift.
    • Osmo: Forge platform generates fragrance molecules 4x faster, creating emotional-profile scents.
    • IFF: ImagenAI builds mood boards from sentiment for scent innovation.
    • Mondelēz: AI for flavor profiles, adaptable to beauty adjacencies like oral care.

White papers emphasise AI’s role: Citrine’s platform optimises formulations for 20% COGS reductions; MDPI details predictive models for preservatives like IK-16-1 peptides.

AI agents revolutionise product and service creation by analysing vast datasets (e.g., consumer genetics, social trends, and ingredient interactions) to generate concepts, simulate outcomes, and iterate prototypes autonomously. This shifts from traditional R&D—often taking 12-18 months—to AI-accelerated processes completing in weeks, with predictive modeling ensuring 80-90% success rates in market fit.

  • Product Creation Processes: Agents use generative AI to design formulations, predict stability, and test virtual prototypes. For instance, they integrate epigenetic data for personalised skincare or AI-optimised fragrances. Services extend to on-demand customisation, like 3D-printed supplements or AR-based virtual try-ons.
  • Key Benefits and Metrics: Companies report 15-30% reductions in development costs and 2-3x faster time-to-market. AI enables “desire at scale” by creating niche products (e.g., wellness-infused cosmetics) while maintaining mass appeal. Sustainability is enhanced through agents optimising eco-friendly ingredients, reducing trial-and-error waste by 40%.
  • Examples Across Competitors:
    • Estée Lauder: Partners with OpenAI for AI-driven product insights, accelerating development for brands like Clinique by analysing consumer data to inform formulations and packaging. contentgrip.com Their AI Innovation Lab with Microsoft uses gen AI to create marketing assets and new services like personalised trend-based product bundles, boosting engagement by 25%.
    • Shiseido: Developed a proprietary AI formulation tool with Accenture, analysing ingredient data to create innovative cosmetics faster, such as stability-optimized serums. This powers new services like AI Makeup Advisor for personalized recommendations via selfies.
    • P&G: Employs AI simulations for product development, analysing feedback to iterate beauty items like Pantene shampoos, reducing time-to-market. pitchgrade.com Partnerships like Moodify create AI-based fragrances for new scents in products.
    • Johnson & Johnson (Neutrogena): Uses AI for 3D-printed personalised skin supplements and apps like Skin360 for custom skincare services, leveraging facial scans for product creation.
    • Sephora: AI for virtual makeup try-ons and skin diagnostics generates new services like personalised regimens, informing in-house product lines.

These innovations create hybrid products/services, like AI-powered wellness apps bundled with physical goods, driving 20-40% higher customer retention.

Detailed List of AI Agents Infused in Tasks, Processes, and Departments

Below is a comprehensive list of possible AI agents in the health and beauty industry, categorised by department. Each agent is infused into specific tasks/processes, acting autonomously to execute workflows, learn from data, and collaborate with humans. This draws from industry trends, where agents handle 30-60% of routine tasks, per McKinsey’s 2025 beauty report. Agents are built on platforms like Microsoft Azure, OpenAI, or custom systems, ensuring integration across operations.

DepartmentKey Processes/TasksAI Agents and Infusions
R&D/Product DevelopmentTrend forecasting, formulation design, prototype testing, ingredient sourcing.– Trend Analysis Agent: Scans social media, sales data, and epigenetics to predict trends (e.g., wellness-infused skincare); infused in ideation sessions for real-time concept generation. – Formulation Optimization Agent: Simulates chemical interactions for stability and efficacy; e.g., Shiseido’s AI analyses combinations to create new serums. corp.shiseido.com – Personalisation Engine Agent: Uses DNA/AI data for custom products; infused in prototyping, like J&J’s epigenetic skincare. jnj.com – Simulation Testing Agent: Runs virtual trials on skin models; e.g., P&G’s AI for feedback-driven iterations. pitchgrade.com – Sustainability Auditor Agent: Optimises eco-ingredients; infused in sourcing to reduce waste.
Manufacturing/Supply ChainInventory management, quality control, logistics optimization, predictive maintenance.– Inventory Prediction Agent: Forecasts demand using sales trends; e.g., SixtySixTen’s AI reduces waste in cosmetics. sixtysixten.com – Quality Inspection Agent: Uses computer vision for defect detection; infused in production lines. – Supply Chain Orchestrator Agent: Reroutes shipments autonomously; e.g., P&G’s AI pipelines for resilient sourcing. klover.ai – Maintenance Bot Agent: Predicts equipment failures; infused in factory workflows. – Sourcing Optimizer Agent: Analyses suppliers for ethical ingredients; supports sustainable processes.
MarketingContent creation, campaign planning, social listening, ad targeting.– Content Generation Agent: Creates personalised ads/assets; e.g., Estée Lauder’s Firefly with Adobe for campaigns. news.adobe.com – Social Listening Agent: Monitors trends/feedback; infused in strategy, like Symphonize’s AI for retention. symphonize.com – Campaign Optimizer Agent: A/B tests and adjusts in real-time; e.g., Shiseido’s AI for digital marketing. accenture.com – Influencer Matching Agent: Identifies partners based on audience fit; infused in promotions. – Trend Forecasting Agent: Predicts viral beauty trends; supports inclusive marketing.
SalesPricing optimisation, recommendation engines, e-commerce personalization.– Pricing Dynamiser Agent: Adjusts prices based on demand; infused in online sales. – Recommendation Agent: Suggests products via AI; e.g., Sephora’s personalized engines boosting sales. superagi.com – Sales Forecasting Agent: Predicts revenue from new launches; e.g., P&G’s AI insights. us.pg.com – Virtual Sales Assistant Agent: Handles B2B negotiations; infused in retail partnerships. – Omnichannel Integrator Agent: Syncs in-store/online experiences.
Customer Service/EngagementQuery resolution, personalised advice, feedback analysis, AR consultations.– Chatbot Advisor Agent: Provides 24/7 skincare tips; e.g., Sephora’s AI for diagnostics. digitaldefynd.com – AR Navigation Agent: Guides virtual try-ons; e.g., Shiseido’s Beauty AR for consultations. corp.shiseido.com – Feedback Analyzer Agent: Processes reviews for improvements; infused in loyalty programs. – Retention Agent: Sends personalised reminders; e.g., Voiceflow’s agents for salons. voiceflow.com – Health Screening Agent: Detects issues like skin cancer; e.g., J&J’s AI tools. jnj.com
HR/OperationsTalent acquisition, training, workflow automation, performance tracking.– Recruitment Agent: Screens candidates for R&D roles; infused in hiring. – Training Simulator Agent: Delivers AI-based employee upskilling; e.g., P&G’s AI for collaboration. us.pg.com – Workflow Orchestrator Agent: Automates admin tasks; supports agile teams. – Diversity Auditor Agent: Ensures inclusive practices in operations.
Finance/ComplianceBudget forecasting, risk assessment, regulatory checks, fraud detection.– Financial Modeler Agent: Predicts ROI for new products; infused in budgeting. – Compliance Checker Agent: Verifies claims (e.g., clean ingredients); e.g., AI for regulatory adherence in beauty. askattest.com – Risk Predictor Agent: Assesses supply risks; supports ethical AI deployments. – Audit Trail Agent: Monitors data privacy; e.g., post J&J’s biometric settlements. globalcosmeticsnews.com

Additional Case Studies Beyond L’Oréal, Unilever, and PepsiCo

  • Additional Case Studies Beyond L’Oréal, Unilever, and PepsiCo
  • JCPenney (Revieve Partnership): AI Skincare/Haircare Advisors yielded +108% conversions, +23% AOV.
  • Super-Pharm: Makeup Advisor drove +232% conversions, 3M data points yearly.
  • BABOR: Skin Coach achieved +442% uplift, +19% AOV.
  • Yon-Ka: Skincare Advisor led to 1.9x conversions, 6.5x pages viewed.
  • No7 Beauty: Advisor boosted 3.6x conversions, +48% AOV.
  • A.S. Watson Group: Skin Advisor across brands: 29% AOV increase, 396% conversions.
  • SKIN FIRST®: Face Decoder: +116% ROI, +16% AOV.
  • RoC Skincare: AI Skin Insight: +62% AOV, +79% conversions.
  • Hamaguchi et al. (2023): ML for foam performance, R²=0.770.
  • Yue et al. (2024): AI peptide IK-16-1 for preservatives.
  • Kim et al. (2023): CNN for EEG in creams, 75.4% accuracy.
  • Dong-Kyu Kim et al.: Deep learning for skincare systems.
  • Noel Codella et al.: ML for melanoma detection.

References

  1. McKinsey: How beauty players can scale gen AI in 2025 – https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/how-beauty-players-can-scale-gen-ai-in-2025
  2. CFMM 2025 White Paper: Artificial Intelligence – Beauty’s Next Frontier – https://www.fitnyc.edu/documents/cfmm/cfmm-2025-team-ai-beauty-next-frontier-whitepaper.pdf
  3. Revieve: AI in Beauty: Real Case Studies on Engagement & Growth – https://www.revieve.com/insider/articles/beauty-ai-case-studies-customer-engagement-sales
  4. DigitalDefynd: 5 Ways Sephora is Using AI [Case Study] [2025] – https://digitaldefynd.com/IQ/sephora-using-ai-case-study/
  5. Wipro: AI in Cosmetics Drives New Standards in Beauty Innovation 2025 – https://www.wipro.com/consumer-packaged-goods/articles/the-next-era-of-beauty-innovation-how-ai-is-changing-the-way-cosmetics-are-created/
  6. Citrine: How Beauty and Personal Care Companies Extract Value from AI – https://citrine.io/resources/white-papers/white-paper-how-beauty-and-personal-care-companies-extract-value-from-ai/
  7. TIJER: Application of Artificial Intelligence in the Beauty Sector – https://tijer.org/tijer/papers/TIJER2304223.pdf
  8. MDPI: Artificial Intelligence in Cosmetic Formulation – https://www.mdpi.com/2079-9284/12/4/157
  9. ResearchGate: Cosmetology in the Era of Artificial Intelligence – https://www.researchgate.net/publication/383006508_Cosmetology_in_the_Era_of_Artificial_Intelligence
  10. BeautyMatter: Beauty Brands Using AI to Supercharge Creativity – https://beautymatter.com/articles/beauty-brands-using-ai-to-supercharge-creativity-and-innovation
  11. LinkedIn: How Beauty Enterprises Leverage AI – https://www.linkedin.com/pulse/how-beauty-enterprises-leveraging-artificial-preeti-tomar
  12. GCI: Beauty Tech Boom – https://www.gcimagazine.com/brands-products/devices-tech/news/22934515/the-beauty-tech-boom-personalized-solutions-driving-market-expansion
  13. Miquido: Generative AI in Beauty Industry – https://www.miquido.com/blog/generative-ai-in-beauty-industry/
  14. Swifterm: Artificial Intelligence in Beauty – https://swifterm.com/artificial-intelligence-in-beauty/
  15. Banuba: AI in Beauty Cosmetics – https://www.banuba.com/blog/ai-for-beauty-and-cosmetics-retail
  16. KIKA: Beauty Brands Trailblazers in AI – https://www.kika.ca/blog/beauty-brands-are-trailblazers-in-ai-enabled-strategies-lessons-for-2024/
  17. Vogue Business: Estée Lauder AI Innovation Lab – https://www.voguebusiness.com/story/beauty/estee-lauder-companies-forms-ai-innovation-lab
  18. EJBM R: Impact of AI on Gen Z in L’Oréal – https://www.ejbmr.org/index.php/ejbmr/article/view/2241
  19. ContentGrip: Estée Lauder Teams with OpenAI – https://www.contentgrip.com/estee-lauder-openai/

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