Ulta’s next growth lever won’t come from opening more stores—it will come from making every customer interaction smarter. At NRF’s 2026 Big Show, executives from Ulta Beauty outlined an emerging AI strategy that aims to deepen loyalty personalization while strengthening the role of in-store associates, a dual focus that reflects where modern retail is headed.
While details remain deliberately high-level, the message was clear: Ulta sees artificial intelligence not as a back-end efficiency tool, but as a customer-facing engine designed to make shopping feel more personal, predictive, and human—even at scale.
From Loyalty Data to One-to-One Experiences
Speaking in New York, CEO Kecia Steelman emphasized that AI could unlock more value from Ulta’s extensive loyalty ecosystem. With millions of members and years of behavioral data, the retailer believes generative AI can move recommendations beyond “people also bought” logic toward something closer to a personal beauty advisor.
In plain terms, Ulta wants AI to help anticipate what a customer needs next—whether that’s a replenishment reminder, a seasonal skincare shift, or a new brand that fits past preferences. The ambition is a one-to-one dialogue at enterprise scale, something traditional rules-based personalization has struggled to deliver.
This reflects a broader industry shift: loyalty programs are no longer just about points and perks, but about relevance. AI is increasingly the only practical way to deliver that relevance consistently.
Why Stores Still Matter in an AI-First Strategy
Crucially, Ulta is not positioning AI as a replacement for human interaction. With most sales still happening in physical stores, Steelman stressed that technology must empower associates, not bypass them.
AI-driven tools could surface product knowledge, ingredient comparisons, or personalized suggestions in real time—helping associates serve customers with greater confidence. In effect, Ulta is exploring how to give every store employee the equivalent of a digital co-pilot.
This approach highlights a key insight: in-store retail remains a competitive advantage, but only if associates are as informed as the customer walking in with a smartphone.
Building AI Agents for the Next Phase of Commerce
In a separate NRF session, Josh Friedman revealed that Ulta is actively developing its own AI agents. While the roadmap is still evolving, Friedman suggested the company already has a clear view of the roles those agents should play.
AI agents—software systems that can autonomously search, recommend, and act on behalf of users—are quickly becoming central to what some call “agentic commerce.” For Ulta, that means preparing for a future where AI doesn’t just assist shoppers, but actively navigates assortments, reviews, and content to make decisions faster.
Marketplace Expansion as an AI Enabler
Ulta’s relatively new third-party marketplace, launched in October, is also part of this strategy. By rapidly expanding assortment and user-generated content, the marketplace feeds AI systems with more signals—product data, reviews, and community engagement—that improve discovery and recommendations.
Friedman noted that this content density is increasingly important in a world where AI agents scan the web on behalf of consumers. More content doesn’t just mean more choice; it means better visibility in AI-driven shopping journeys.
StoreTechNews Analysis: AI as Retail’s Trust Test
Ulta’s comments may sound exploratory, but they reveal three important trends shaping retail in 2026:
1.AI is moving front-stage. Retailers are now talking openly about customer-facing AI, not just internal optimization.
2.Physical retail is being re-armed, not replaced. AI’s role is to enhance human service, especially in experience-driven categories like beauty.
3.Content is becoming infrastructure. Marketplaces and communities aren’t side projects—they are fuel for AI discovery engines.
The challenge ahead will be execution. AI-driven personalization only works if customers trust it, and that trust depends on accuracy, transparency, and restraint. For Ulta, success will hinge on whether AI truly feels helpful—not intrusive.
If the retailer gets that balance right, its loyalty program could become less of a marketing tool and more of a competitive moat.
Source: Based on reporting from Retail Dive