Artificial intelligence’s stronghold of the beauty industry is increasing, with virtual try-on, skin analysis and other systems becoming a regular addition to our routines. But, with microbusinesses making up more than three quarters of the industry, how do we make sure they’re not left behind?
Artificial intelligence (Ai) – the perceiving, synthesising, and inferring information demonstrated by machines, as opposed to intelligence displayed by humans – has reached unprecedented heights recently, with systems being used within businesses and in B2C environments.
However, with conglomerates harnessing the systems with ease, we must ensure that access to and education on new ways of working are filtered to SMEs in the beauty industry. After all, these businesses make UK beauty what it is.
In the Value of Beauty Report 2023, Oxford Economics cited the development of Ai as one of the key structural changes/challenges facing the personal care sector. The same report found the number of beauty SME’s increasing by 25% between 2015 and 2022. So, how can we ensure that there is equal opportunity for smaller businesses to harness new technology?
As part of its work to support the industry in its technological transition, the Council is working alongside the E-commerce Trade Commission, which has a focus on Ai and technology, to look at the ways in which we can unlock the untapped potential of beauty Ai for SMEs in the beauty space.
Victoria Brownlie, Chief of Policy highlights: ‘Many of the challenges small and micro businesses face centre around a lack of time and resources available to implement new systems. What’s more, leaders have to manually juggle the management of several areas of the business with limited staff. AI can provide a vital role in addressing this, giving staff more time to do the hands-on jobs they need.’
Although small businesses may not be able to create brand new Ai systems, they could approach the systems as a new, albeit virtual, member of the team. Think of it as a tool to spur human inspiration or to do more menial tasks, allowing for your team to ruminate on what really matters.
For example, Ai can be used to track product control, supply chain management, and customer analytics, as seen via Lush’s commitment to Digital Ethics.
Ai can also be a useful tool for the collection of data. The Value of Beauty report (2023) reads: ‘The company’s use of Ai software to support with customers’ queries and to provide them advice has contributed to a 96% customer satisfaction rate. The same company has established a data analytics team that analyses customers’ interaction with the brand at various online touch points.’
On top of data collection and management, brands big and small are also launching digital try-on services to enhance consumer engagement. In its recent report, Revieve writes: ‘With consumers hunting for more personalised solutions to their new online shopping experience, beauty brands are also expanding their product lineups to include Ai-powered platforms.’
It’s clear that artificial intelligence’s influence on the industry is set to increase, however it would be amiss to mention the technology without touching on the social reticence that exists within the space.
Whether it be the lack of diverse systems or the fear of increased automation, it feels as though you can’t mention Ai without someone reacting negatively. To tackle these anxieties, the Government has published a series of commitments to support the safe integration of this. The Council will continue to represent the industry in these conversations whenever possible.
The Council is also working with the Government to promote its Help to Grow resource, which outlines key advice for adopting new technologies, you can find this here.
Linked to Ai and technology, the Council is also supporting the work of the E-commerce Trade Commission, which has many great resources specifically for SMEs. Find out more here.
