Unlocking the potential of AI: Enhancing consumer engagement in the beauty and cosmetic product purchases

Abstract

This study reviews the use of artificial intelligence (AI) technology applications, particularly augmented reality (AR) and virtual reality (VR), in the beauty and cosmetic industry (BCI). It investigates the transformative potential of AI-enabled solutions in BCI and its impact on consumer satisfaction. While consumers are willing to adopt smart technology tools and solutions into beauty services, there is a lack of clarity on the level of consumer awareness and willingness to utilise AI-led technologies. To fill this gap, this study develops a conceptual framework based on AI affordances by classifying them into four distinct affordances of AI, namely: existence, perception, actualisation, and effect. We employ a mixed-method analysis, using 177 user testimonials and a quantitative analysis of 866 users. The uniqueness of this study is investigating the moderating role of virtual trial experience in BCI. The study found that AI compatibility significantly impacted all three dimensions of affordance perception. We confirmed that perceived relative advantage also had a significant positive influence on all three dimensions of affordance perception. In addition, all the affordance perception variables significantly positively affected the willingness to adopt traditional beauty and cosmetic product purchase methods. The results also confirmed the significant moderating role of virtual trial experience magnifying the willingness to embrace AI assisted beauty and cosmetic purchases. The findings contribute to an enhanced understanding of AI integration tools in BCI, and provides an insight into consumers’ willingness and awareness to adopt smart technologies in beauty services.