In 2025, artificial intelligence, immersive commerce, and automation moved from trial runs to essential tools across the beauty industry. Major companies like The Estée Lauder Companies launched their ConsumerIQ data platform with Microsoft, while L’Oréal integrated Appier’s AI into SkinCeuticals for personalised marketing. Unilever deployed 21 AI-powered Sketch Pro studios globally for automated content creation.
Retailers embraced AI for consumer engagement. Boots combined pharmacist training with an AI skin analysis tool. Amazon introduced tools like “Help Me Decide,” and Target and Stripe embedded shopping within ChatGPT, merging advice and purchase points.
Immersive tech also saw expansion. Zalando acquired AR firm DeepAR for virtual try-ons. Kose showcased mixed-reality shopping, and Charlotte Tilbury partnered with gaming title Genshin Impact for online engagement.
Social commerce matured with Sephora’s My Sephora Storefront affiliate platform. e.l.f. Cosmetics launched shoppable Twitch livestreams, and Maybelline New York used Snapchat AR for virtual looks in India, signalling a move towards community-driven commerce.
Not all digital ventures succeeded; Shiseido scaled back metaverse and NFT plans, focusing on ROI over novelty. Automation prompted workforce shifts, with Shopify pausing hiring if AI could fill roles, and Amazon anticipating job reductions.
Regulation intensified. TikTok faced a €530 million fine from Ireland’s data regulator. Australia prepared to ban social media for under-16s, and data breaches at Chanel and Louis Vuitton highlighted cybersecurity risks.
Despite challenges, digital sales grew, with US Black Friday online spending reaching US$11.8 billion, boosted by AI. ODDITY Tech reported strong results with its direct-to-consumer models.
2025 established technology as the core of beauty strategy. However, the year also underscored the dual nature of digital advancement: increased opportunities come with greater exposure to risk and regulation. Future success hinges on balancing innovation with governance and measurable outcomes.
