How AI Adapts to Market Disruptions and Consumer Shifts
Case Studies on COVID-19 in the Cosmetics Industry
DOI:
https://doi.org/10.58445/rars.1664Keywords:
Covid-19, AI, economicsAbstract
The cosmetics industry has increasingly embraced artificial intelligence (AI) prediction models to forecast market trends, optimize inventory, and enhance consumer personalization. The COVID-19 pandemic exposed the limitations of these models, as they struggled to adapt to sudden and significant changes in consumer behavior. This paper examines the historical performance of AI prediction models in the cosmetics industry, the impact of disruptions like COVID-19, and the specific challenges faced by companies L'Oréal, Estée Lauder, and Procter & Gamble. It also explores the adaptation and mitigation strategies employed to address these challenges, including retraining AI models with real-time data and incorporating advanced anomaly detection techniques. By analyzing the effectiveness of these approaches, the study highlights the need for ongoing improvements in AI systems to enhance their resilience and accuracy in the face of market disruptions, ultimately providing a roadmap for the future of AI-driven decision-making in the cosmetics industry.
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