Market overview: At a glance
What's in this report?
Introduction
Top 5 trends:
2. Chatbots
Global AI Market Value & Growth, 2017
Key market challenges addressed
Beauty businesses are clamouring to integrate the capabilities of AI into their offer, but while being fast to market is key, they should also be wary of the challenges in deploying the technology in their projects.
Victoria Buchanan, Strategic Researcher at The Future Laboratory, explains: “AI is still very much in its infancy and I think brands could risk launching technologies that don’t deliver on their promise if they launch too soon. A lot of the tech that I’ve seen in this space can be quite gimmicky and would also be expensive to scale.”
Jennifer Tidy, Senior Vice President of ModiFace, agrees: “AI is buzzing in multiple industries, it’s the new powerhouse. But it has to be real AI – based on deep learning.”
If AI is not delivered well it can lead to an irritating or frustrating user experience. Nidhima Kohli, founder of Beauty Matching Engine says: “The failures with some AI companies lie within their consumer recommendations not being accurate enough, as AI includes multiple stages which a particular company may not specialise in. This could be because they don’t have a tech advantage for beauty or the data know how to build AI, which instead leads to them struggling to suggest the right recommendations and using a basic filter to display products or primarily pushing out their own brand instead,” says Kohli.
In order to grow with AI, brands and retailers need to have the right know how to achieve a seamless experience for their customers.
“A seamless experience would entail an enhanced personalised shopping journey with faultless recommendations,” explains Kohli. “I would say it also covers knowing what the customer really likes with a fast checkout and good conversion rates for the retailer.”
+57% growth in funding for AI startups since 2010
CAGR growth. Source: Accenture, Boost Your AIQ Transforming into an AI Business
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- Companies:
- L'Oreal
- Estée Lauder Companies
- COTY
- Sephora
- Procter and Gamble
- Shiseido
- WGSN
- Microsoft
- Accenture
- JWT
- The Future Laboratory
- Perfect Corp
- Daxue Consulting
- Juniper Research
- Modiface
- Nordicfeel
- Automat
- Prose
- Beauty Matching Engine
- Amazon