The benefits of AI for online beauty retailers are…

A new survey indicates online beauty retailers have good reasons to invest in artificial intelligence (AI) solutions.

Respondents desire a level of personalization beauty retailers can only reach with AI. For example, 62% of respondents—including 80% of Gen Z respondents—are more likely to buy a beauty product if they can use tech to land on their perfect formula. And 43% of respondents would rather shade-match for foundation through AI online than test in-store.

According to the survey of over 1,000 U.S. adult consumers from checkout technology company Bolt, 75% of respondents would pay more for beauty and skincare products if they got personalized online shopping experiences.

And 72% of Gen Z respondents are willing to pay more than 10% for beauty products, while 57% of these consumers will pay 11-20% more for personalized online beauty purchases. Forty-five percent of respondents have not purchased a beauty product online because of the lack of personalized options.

Interestingly, around half of the Gen Z, millennial, and Gen X respondent cohorts prefer shade-matching with AI online rather than in stores, while 70% of the baby boomer and Silent Generation respondents would rather shade-match in stores than online.

"For brands to stay ahead, it's all about getting personal," said Shilpi Narang, senior VP of customer experience at Bolt. "Retailers are clamoring for new ways to know and recognize their shoppers, and they're learning that personalization is impossible until they identify their shopper. With Bolt, brands can seamlessly log in more of their shoppers, building deeper connections with them and personalizing their buying experience—leading to higher conversion and most importantly, greater lifetime value."

Boltt's findings, in partnership with YouGov, are based on the results of an online survey that was fielded May 15 - 17, 2023 on 1,038 adults in the U.S. who have shopped for a beauty and/or skincare product online within the past six months. This group of survey respondents was comprised of 53% female and 47% male participants; 10% Gen Z, 35% millennials, 27% baby boomer, and 3% Silent Generation. The figures have been weighted and are representative of all US adults ages 18 and older.

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