What: Sephora has launched an AI-powered app within ChatGPT, enabling personalised beauty recommendations, loyalty benefits, and plans for in-app purchases.

Why it is important: The launch demonstrates how major retailers are leveraging AI to transform customer engagement and streamline the shopping journey, building on trends identified over the past year.

Sephora’s introduction of an AI-powered app within ChatGPT marks a significant evolution in the retail landscape, as the brand leverages advanced technology to deliver highly personalised beauty recommendations and integrate loyalty benefits for its customers. This initiative, first tested in the United States, allows users to access tailored advice, utilise their loyalty points, and benefit from exclusive member perks such as free delivery and samples. The app is set to expand its capabilities, soon enabling direct purchases within the ChatGPT environment, which will further streamline the customer journey. Sephora’s strategy aligns with the broader industry movement toward conversational commerce, where AI-driven platforms are reshaping how consumers discover, compare, and purchase products. By embedding its experience within ChatGPT, Sephora not only enhances convenience but also positions itself at the forefront of digital innovation, responding to the growing consumer demand for seamless, interactive, and personalised shopping experiences. This approach underscores the increasing importance of AI in redefining retail engagement and loyalty.

IADS Notes: Sephora’s launch within ChatGPT in March 2026 exemplifies the retail sector’s rapid adoption of AI-driven personalisation and conversational commerce. This move follows broader trends observed in August and September 2025, where AI agents significantly improved customer service productivity and influenced global shopping behaviours. The introduction of ChatGPT Instant Checkout and Target’s similar app launch in late 2025 further highlights the industry-wide shift toward hyper-personalised, AI-mediated shopping experiences, compelling retailers to rethink traditional engagement and fulfilment strategies.

Sephora launches an 'app' within ChatGPT as the platform announces upgrades to its shopping experience