The beauty industry is in an ecological crisis. The global imperative for sustainability has hit this resource-intensive industry hard and, as consumers increase their demand for ethical, eco-friendly products, the immense pressure put upon manufacturers to rethink their practices and deliver has never been higher.
But could AI be the answer? In this article, we’ll explore the role of AI in the beauty industry, and explore how it can help to provide actionable improvements to the industry’s sustainability.
Why the urgency?
Because the world is quite literally burning. Humanity has gone at the planet’s natural resources like a swarm of ants to a fresh leaf, except the reality of it is much worse.
From production methods that guzzle gallons of water, to microplastics piling higher than K2, the footprint of the retail world is severe, and, if left unchecked, the consequences will be dire.
Thankfully, hope is not yet lost. We now live in an era where even your morning latte comes with a carbon offset, so ignoring one’s carbon footprint can no longer be excused by simple ignorance.
Rising consumer awareness and, let’s be honest, a fair amount of public shaming on social media, has led to a shift in buying behaviour.
Gen Z, in particular, isn’t keen on the idea of living in some kind of Mad Max-esque apocalyptic hellscape, and has become uncompromising when it comes to ethical sourcing and sustainability, scrutinising brands for every environmental misstep.
Regulations in key markets like North America and Europe are also growing stricter, with initiatives such as the EU Green Deal and new Packaged Product Waste Regulations (PPWR) forcing manufacturers to rethink everything from product design to end-of-life disposal.
Amidst these challenges, beauty brands are also grappling with the monumental task of untangling complex global supply chains that often span continents and involve multiple suppliers.
The scope of the task can’t be overstated. The struggle is real.
The AI-shaped catalyst
Artificial intelligence is changing the world, and while its uses may sometimes be questionable, it is undeniable that it can provide real, positive change to the beauty industry.
One striking example of AI’s potential is its ability to improve personalisation while reducing waste. Using AI-driven personalisation to provide product suggestions to individual preferences and skin profiles makes it far less likely that a customer will purchase a product ill-suited to their needs, thus minimising returns and lessening the associated reverse logistics carbon footprint.
That’s not mentioning the incredible potential of AI-powered virtual try-on tools, now a staple for many brands. These not only drastically improve the consumer experience, but also contribute to sustainability goals by cutting down on physical product samples and reducing the environmental costs associated with returns.
Brands are exploring advanced platforms like Makersite, Potion AI, and Garnier Skin Coach AI to analyse historical formulation data, benchmark ingredients, and even forecast consumer trends, enabling rapid adjustments toward more sustainable practices.
AI, then, serves as both the spotlight and the scalpel, highlighting inefficiencies, then surgically removing unsustainable elements from every stage of product development and supply chain management.
AI-powered solutions for improved sustainability
There are a number of ways that AI can have a big impact on sustainability in the beauty industry, covering all aspects of manufacturing, supply, and retail:
Sustainable design and material selection
Studies have shown that over 90% of a cosmetic product’s environmental impact is determined during the design phase, showing just how vital it is to involve AI in the process.
Platforms like Makersite integrate multiple data sources to assess everything from compliance with environmental product declarations (EPDs) to calculate a product’s carbon footprint (PCF).
By using these platforms to crunch the numbers for scope 1, 2, and 3 emissions, designers can visualise the environmental impact of their choices before a product ever hits the market. This means that critical trade-offs can be made in the early design stages, not later down the line as a reactionary measure.
Optimising product formulation
One of the most intriguing and groundbreaking applications of AI emerging in the beauty industry is its capacity to optimise product formulations.
Take the high-profile collaboration between IBM and L’Oréal. This partnership has paved the way for an AI foundation model that delves deep into formulation data, accelerating the development of sustainable cosmetics by sifting through thousands of historical formulations and identifying eco-friendly alternatives.
This wouldn’t be possible without the vast quantities of data these two beauty giants provided, yet by leveraging big data, AI can uncover bio-sourced ingredients and more circular materials that align perfectly with lofty sustainability targets.
Tools like Potion AI can further expedite the ingredient discovery process.
Traditional lab testing can be both time-consuming, resource-intensive, and subject to criticism, but with AI-driven benchmarking, the ability to rapidly compare and contrast the properties of thousands of ingredients, flagging those that offer a greener, provides more sustainable profile.
Using computational chemistry and physics-based modelling, companies like Schrödinger Inc. are pushing the boundaries by screening antioxidant ingredients and predicting not only their efficacy but also their environmental sustainability.
Supply chain transparency
The power of AI doesn’t stop with ingredient discovery. The potential to streamline and improve supply chain management is equally transformative.
Global supply chains are becoming ever more complex. AI systems provide a detailed, data-rich overview of every step in the supply chain, measuring environmental impacts at each juncture, flagging inefficiencies, and even pinpointing opportunities to reduce transportation-related carbon emissions.
Insights from the beauty industry
The practical applications of AI in driving sustainability are best understood by listening to those at the front line of innovation.
Neil D’Souza of Makersite fame is a big advocate for integrating sustainable solutions right from the product lifecycle’s inception. He believes that early-stage decision-making, supported by AI, can dramatically reduce the environmental impact of beauty products.
Leaders from the L’Oréal and IBM partnership are equally enthusiastic. They believe that their groundbreaking AI collaboration holds the key to revolutionising cosmetic formulation.
These experts believe that the key to AI is not just about speed, it’s about precision. By honing in on sustainable ingredients and prioritising eco-friendly alternatives, their work is helping L’Oréal to smash their ambitious environmental targets.
The boffins over at Arcaea have already begun to demonstrate the promising role of AI in developing microbiome-targeted, sustainable ingredients that cater to both beauty and health.
Innovation doesn’t stop there. MetaNovas Biotech are pioneering the use of deep learning and transfer learning techniques to overcome the ongoing issue of data scarcity in bioactive ingredient research. They are unearthing sustainable, efficient ingredients that could redefine personal care formulations.
The consensus among these industry leaders is overwhelmingly clear. AI is a powerful enabler, but it must be paired with rigorous scientific expertise and robust experimental validation.
The challenges and considerations
But of course, AI, like anything fun, is not without its negatives.
We’re a bit like Adam and Eve, frolicking around with flora plastered over our genitals with nary a care in the world, while that treacherous snake lurks in the shadows. Take a bite of that artificial apple, and there will be consequences.
One of the most pressing concerns is the colossal energy consumption required to train large AI models. Data centres, and the computational heft they demand, can add to the environmental strain if not managed responsibly.
This paradox means that as we push for more sustainable beauty solutions, we must also need to make sure that the AI processes themselves remain energy efficient and environmentally sound.
Data quality and availability present further challenges. Accurate AI-driven insights hinge on reliable, comprehensive data, but in a field where proprietary formulations and customer insights are closely guarded, securing the right datasets can be a daunting task.
And of course there is the issue of ethics.
Data privacy, algorithmic bias, and transparency remain hotly debated topics for a reason. Brands need to be transparent about how they collect and use customer data, so that their practices are both ethical and compliant.
Before AI-driven product formulations can be rolled out at scale, we need to test and confirm that they deliver solutions to the performance, ethical, and environmental concerns.
The future is bright
The role of AI in our world is not going to slow down.
Innovations in AI, AR, and body scanning technology will continue to create even more sophisticated tools that will drive sustainability across the entire value chain, from ingredient sourcing and formulation, to packaging design and consumer engagement.
The future will likely see AI integrated more deeply into every stage of product development, not only greatly improving efficiency, but also making sure that sustainability targets are met with precision.
As regulatory standards tighten and consumer expectations soar, AI-powered solutions will be indispensable in helping the beauty industry navigate these challenges.
Velstar: leaders in AI
If one thing is abundantly clear, it is that AI has the potential to transform the beauty industry.
Sustainability initiatives, driven by the biggest names in the industry, are already starting to bear fruit.
The benefits are palpable: smarter, greener products, streamlined operations, and a future where ethical practices aren’t just talked about, they’re lived.
If you’re interested in seeing how AI can help your business, then get in touch with Velstar.
With an AI-focused mindset, we are uniquely positioned to guide businesses through the world of artificial intelligence, helping them to adopt this innovative technology in a way that can grow their business.
To learn more about our services, get in touch.
