How and where consumers buy their cosmetics today is in flux, as e-commerce, online marketplaces, and specialty stores like Ulta Beauty encroach on traditional drugstores and mass chains. Now, with AI search increasingly influencing shoppers, the landscape may shift even further.

A McKinsey survey found that a majority of consumers use AI search to research products. In beauty and wellness, specifically, about half use AI search to help make a purchase decision. From an incentives perspective, a recent XCCommerce survey found that more than 70% of consumers are exploring AI tools to help them find the best offer possible, and a third are already using AI tools for deal-seeking. 

AI search is enabling consumers to move more quickly from product discovery to purchase. This means traditional cosmetics retailers and beauty brands must have online product information, incentives, branding, and messaging that is accurate, consistent and relevant so items surface inside AI searches. 

AI Search Fuels E-commerce 

In the beauty space, online sales continue to outpace in-store sales: NielsenIQ (NIQ) data found e-commerce sales jumped 18% in 2025 compared to the year before, vs a 3% bump for physical retail. 

AI search tools could inspire more online sales as they provide direct links for shoppers to buy products, as well as extend offers. Retailers and beauty brands need to ensure incentives information is accurate across product pages, packaging, online deals, and more, to tap into the opportunities that AI search presents. Having data and systems unified will be especially pertinent.

Unified Incentives Maintain Loyalty

When it comes to AI search and promotions, loyalty is on the line. 

Many retailers still manage promotions through disconnected systems — where in-store coupons, digital offers, and marketing promotions operate independently. That fragmentation creates unnecessary risk. Overlapping discounts, expired offers, or conflicting promotions can erode margins while also confusing customers who expect a seamless experience.

To avoid these pitfalls, beauty brands need to move toward a centralized approach to incentive management. A unified experience provides a single source of truth for every offer across the organization, allowing store operations, e-commerce teams, marketing and social channels to work from the same promotion schedule and data.

Here, retailers gain greater control over how incentives are applied. Businesses will be better prepared for how incentives appear in AI search, resulting in a more consistent execution alongside a better experience for shoppers, no matter how they engage.

About the Author

Dan Surtees serves as VP of strategy at XCCommerce, partnering with top retailers to design and execute promotions and loyalty initiatives that fuel sustainable growth and deepen customer engagement. Since 2020, he has played a key role in advancing competitive positioning through data-driven strategy and innovation. 

Photo: Shutterstock/ BongkarnGraphic