Inference Beauty Leverages AI to Boost Conversion Rates with First-Party Data

Key Takeaways

Inference Beauty focuses on utilizing meaningful data to enhance AI technology in beauty e-commerce.
The company reports a 30% to 50% increase in conversion rates for brands leveraging its AI-powered diagnostics.
Founder Estella Benz emphasizes the importance of first-party data and personalized recommendations in beauty shopping.

Innovative Approach to Beauty E-commerce

Estella Benz, founder of Inference Beauty, asserts that the future of beauty e-commerce relies heavily on the quality of data that fuels artificial intelligence (AI), rather than simply being the first to adopt the technology. Established in 2017 and rebranded in 2025, Inference Beauty specializes in utilizing an extensive proprietary ingredient database to help consumers choose beauty products tailored to their sensitivities and preferences.

Originally known as Skin Match Technology, the company broadened its offerings from skincare to encompass makeup, haircare, and fragrances. Benz highlights the significance of their data-driven approach, where AI goes beyond basic factors such as skin type and climate. Instead, Inference Beauty’s system dissects ingredient compositions, offering insights on their source, function, and skin effects, enriching the shopping experience.

Today, Inference Beauty collaborates with major brands and retailers including L’Oréal and Asos as a seamless, plug-and-play addition to existing e-commerce platforms. While many brands employ AI technology, Benz emphasizes that their differentiator lies in the depth and specificity of the data, allowing for refined product recommendations.

Pricing for Inference Beauty’s services varies depending on the desired level of personalization and data integration, with standalone tools starting at approximately $150 per month. Most partners invest between $500 to $3,800 monthly for comprehensive packages that include transparency and discovery features. Currently, the database hosts information from over 2,500 beauty brands, with over 50 brands actively utilizing Inference Beauty’s technology in live settings. Benz has noted a significant uptick in demand from luxury beauty brands seeking effective e-commerce solutions.

The results speak for themselves, as brands using Inference Beauty’s tools report conversion rates rising by 30% to 50%, alongside increases in the average basket value and more items per transaction. Benz points out that many brands overlook an essential aspect of data capture—first-party data. Her analysis suggests that many are not leveraging these AI diagnostics to connect with consumer relationship management systems effectively.

For instance, Kiehl’s in Spain experienced a 12% signup rate, thanks to Inference Beauty’s diagnostic tools, which translated into 100 new customer profiles daily, allowing for more targeted marketing efforts. The incorporation of AI personalization is now a key expectation across beauty categories, with fragrance surprisingly emerging as a strong performer. Inference Beauty’s fragrance finder has shown remarkable completion rates of close to 95%, providing highly personalized recommendations based on existing preferences.

Looking ahead, Benz anticipates that AI-driven shopping assistants and language models will revolutionize product discovery in beauty e-commerce. This transition is compared to the early days of search engine optimization, suggesting that brands that do not adapt may fall behind. Benz emphasizes the need for brands to facilitate the discovery process and maintain transparency in their product offerings.

Despite the advancements in AI, she does not consider traditional retail to be obsolete, as established retailers provide necessary validation that can enhance brand visibility in AI environments. Benz observes that independent beauty brands have a competitive advantage in being agile and responsive to market changes.

Ultimately, Inference Beauty aims to redefine beauty commerce, and its technologies will be showcased at the upcoming Tech*AI Summit in New York City on February 9.

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