AI in Consumer Decision Making: A Study on Impact of AI On Cosmetic Products

Artificial Intelligence (AI) has emerged as a game-changer in the global beauty and cosmeticsindustry, revolutionizing traditional approaches to discovering products, selecting options, andengaging with consumers. The growing demand for personalized experiences, convenience,and interactive engagement has positioned AI-driven technologies—such as intelligentchatbots, real-time skin assessments, virtual try-on solutions, and product configurators—at theforefront of consumer buying choices. This exploratory study investigates the role of AI in theusage of cosmetic products, with particular objectives to assess consumer awareness of AIbased sentiment analysis and evaluate the challenges associated with virtual try-on technologiesin accurately simulating product trials. A purposive sample consisting of 100 femalerespondents, who actively utilize AI-driven cosmetic products, was gathered through bothprimary and secondary data sources. Significant insights from earlier studies underscore thepotential of AI to enhance personalization, increase purchase intent, and boost consumersatisfaction while also highlighting challenges related to technological limitations, biases, costconsiderations, and ethical concerns. This current research contributes to the understanding ofhow AI facilitates mass customization and influences consumer behaviour in the cosmeticssector, while also acknowledging critical barriers that require strategic and regulatory actionsto ensure sustainable implementation. This study examines how Artificial Intelligence (AI)influences the decision-making process of consumers in the cosmetics industry, emphasizing sentiment analysis and virtual try-on technologies. In summary, AI is demonstrating substantialpotential for enhancing personalization and engagement, despite challenges related toawareness, trust, and the realism of simulations.