Sephora and Ulta Launch AI Shopping Assistants as Beauty Retailers Race to Capture $190 Billion Agentic Commerce Market

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5.28.2026

Quick Facts

Sephora integrated its app with ChatGPT in March 2026, while Ulta partnered with Google Gemini one month later
Agentic shoppers could capture 10% to 20% of U.S. e-commerce, worth $190 billion to $385 billion by 2030
Amazon sold $8.1 billion in beauty products in Q1 2026, up 13% year-over-year, pressuring traditional beauty retailers

Beauty retailers Sephora and Ulta Beauty launched AI shopping assistants in 2026 as they compete for control over the rapidly growing agentic commerce market.

Sephora integrated its app within ChatGPT in March 2026, allowing its 80 million Beauty Insider members to receive personalized product recommendations through conversational AI. One month later, Ulta Beauty announced a partnership with Google Gemini to make its products shoppable within Google’s AI search and Gemini app.

“Competition is real, especially in this category,” said Ulta Beauty CEO Kecia Steelman. “We are really getting into Only at Ulta, which I think is going to be really important as you’ve been hearing a lot about agentic AI.”

The moves come as agentic shoppers could represent $190 billion to $385 billion in U.S. e-commerce spending by 2030, capturing 10% to 20% of total market share. Roughly 23% of Americans made purchases using AI in the past month.

Ulta’s implementation allows customers to receive recommendations, compare products and complete transactions within Google’s AI interfaces. The retailer is using insights from its 46 million-plus members to power personalized guidance across its digital assortment.

“Ulta Beauty has always been about inspiring guests’ discovery through trusted expertise and curated choice,” said Lauren Brindley, chief merchandising and digital officer. “Now, we’re extending that same strength into AI-powered shopping experiences.”

The beauty retailers face mounting pressure from Amazon, which sold $8.1 billion worth of beauty products in Q1 2026 alone, representing a 13% increase from the previous year. Amazon’s AI assistant Rufus drove higher spending, with users spending 80% more than non-users during November and December 2025.

Consumer behavior data shows significant AI adoption in beauty. Nielsen reports consumers conduct over 1 billion beauty-related searches per week on ChatGPT. More than a third of beauty shoppers and over half of Gen Z use AI to research or purchase products.

The global beauty and personal care market generated $677 billion in revenue in 2026, with U.S. prestige beauty retail sales growing 6% to $8.1 billion in Q1. AI-generated product recommendations show 4.4x higher conversion rates compared to traditional search.

However, trust remains a challenge. Only 46% of shoppers fully trust AI recommendations, and 89% still verify information before purchasing. Additionally, 88% want clear sourcing and 87% want verified reviews.