Historically, sales representatives at department stores or door-to-door have played a crucial role in providing personalized product recommendations to customers. However, these experts are scarce in the online realm. While beauty influencers are abundant, they often promote specific products rather than catering to individual consumer needs and desires.

According to Hong, the goal is to “provide the same level of service that customers receive offline in the online environment.”

Hyper-personalization

Amorepacific, a company founded 80 years ago by Suh Sungwhan, has a rich history of innovation. Initially, the company’s products were handmade by Suh’s mother, Yun Dokjeong, who bottled camellia oil. Over the years, the company has evolved and expanded, establishing a cosmetics lab in the 1950s and a beauty counseling center in the 1960s. Today, the company is led by Suh’s son, Kyungbae Suh, and boasts a range of well-known brands, including Etude, Innisfree, and Hera at the entry level, Laneige as a mid-range option, and Sulwhasoo at the luxury end.

Amorepacific’s products are sold in over 15 markets, with Korea, China, and the rest of Asia Pacific being the largest markets. The company is also expanding its presence in North America and Europe.

Amorepacific was already utilizing AI technology on its online platform, Amore Mall, to drive product search, recommendations, and skin diagnosis when generative AI emerged about three years ago.

Chikook Noh, Amorepacific’s AI Solutions Team Leader, noted that the company saw an opportunity to create a “conversational service” using generative AI.

The AI Beauty Counselor (AIBC) utilizes OpenAI’s GPT 4o and 4o-mini large language models on Microsoft Azure OpenAI Service to respond to customer queries within the app. The underlying data is managed using Data Factory on Microsoft Fabric and AI Search functions in Azure AI Foundry.

According to Noh, the AIBC addresses the limitations of the company’s existing online skin diagnosis tool on Amore Mall. Currently, consumers answer a series of questions and upload a photo of their face, which generates an overall score and provides skincare advice and product recommendations.

Over the past four years, the skin diagnosis tool has been used 2.5 million times online and in-store by consumers. However, the IT department observed that when used online, the tool has a lower conversion rate to purchase, whereas in-store usage results in a higher conversion rate due to the presence of a sales assistant.

The AI app aims to replicate the advice provided by in-store sales assistants to drive sales. The AIBC will take into account consumers’ purchase history, review history, and online skin diagnosis to provide personalized recommendations.

The key aspect of the AIBC is “hyper-personalization,” where the app understands individual consumer needs and provides tailored advice, according to Noh.

Diverse Beauty Needs

The AIBC development team expects interest from a wide range of consumers, including those who do not frequently use beauty products.

Hyejin Yoon, a 35-year-old former Chinese teacher, now a stay-at-home mom, represents a different segment of consumers. Before having her baby, she used various Amorepacific brands but now only has time for a simple skincare routine using fragrance-free products from Illiyoon.

Yoon noted that her skin has become drier since becoming a mother and that she struggles to find suitable products. She briefly tested the AIBC app and expressed interest in using it, particularly if it includes facial analysis.

Yoon’s experience highlights the need for personalized beauty advice, which the AIBC aims to provide.

The AI Beauty Counselor is Amorepacific’s first public-facing implementation of generative AI.

The company had previously launched a generative AI chat tool for internal use, also on Microsoft Azure OpenAI Service, in 2023. This tool has been utilized for various tasks, including summarizing medical research articles and creating marketing content.

Given the AIBC’s public-facing nature, the IT team has taken steps to address potentially sensitive topics, such as politics and religion, by programming the app to respond with a message stating that it cannot answer such questions.

In the future, the AIBC is expected to expand its capabilities to include voice and image-based interactions, providing advice on makeup and health supplements in addition to skincare.

Top Image: Sion Kim, a 26-year-old Pilates instructor, said she would use the AI Beauty Counsellor app to stay up-to-date with seasonal trends and find products suitable for her skin type. Photo by Seong Joon Cho for Microsoft.