ETHICAL CHALLENGES IN AI-DRIVEN CONSUMER JOURNEY – A CASE STUDY OF L’ORÉAL’S HAIRDRESSING SERVICES

Abstract

Purpose: This study examines the integration of artificial intelligence (AI) in hairdressing services by L’Oréal, with a focus on its ethical implications, consumer experience, and business practices. It evaluates how AI-driven personalisation, digital engagement, and automation impact the beauty sector, assessing both opportunities and challenges in the adoption of AI technologies. Need for the Study: The cosmetics and hairdressing industry is undergoing a digital transformation, with AI playing an increasingly significant role in product recommendations, customer interactions, and service efficiency. However, alongside the benefits of AI, concerns regarding data privacy, algorithmic bias, consumer autonomy, and transparency have emerged. Methodology: The study employs an exploratory case study approach, analysing L’Oréal’s AI-driven digital innovations in hairdressing services. Data was collected from L’Oréal’s official reports, industry publications, and relevant academic literature. A thematic analysis was conducted to identify key ethical concerns and business implications of AI adoption. Findings: The study finds that L’Oréal utilises AI-driven technologies at various stages of the consumer journey, for example AI-powered marketing campaigns, influencer endorsements, virtual try-on tools, and personalised chatbot recommendations. While AI significantly enhances personalisation, efficiency, and sustainability, the study identifies key ethical concerns, including: algorithmic bias, potentially leading to exclusionary recommendations; manipulative marketing practices, reduced consumer autonomy, and concerns regarding digital exclusion, particularly among consumers with low digital literacy or limited access to technology. Practical Implications: The findings highlight the importance of ethical AI implementation in hairdressing services and the broader beauty industry. Businesses adopting AI must prioritise fairness, transparency, and inclusivity to maintain consumer trust. Additionally, companies should invest in consumer education initiatives to ensure that AI-driven personalisation enhances, rather than restricts, consumer choice.

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