Ulta Beauty Embraces AI and Personalization at CES 2026

Beauty retailer positions itself as a technology-driven consumer experience company, leveraging data and AI to drive customer loyalty.

Published on Feb. 24, 2026

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Ulta Beauty is showcasing a significant strategic shift at CES 2026, moving beyond its core retail operations and positioning itself as a technology-driven consumer experience company. The beauty retailer is focusing on leveraging artificial intelligence to deepen customer loyalty and personalize the shopping journey, with its loyalty program and personalization engine now central to driving nearly all of its sales.

Why it matters

Ulta Beauty's pivot towards data-driven personalization and technological innovation reflects a broader trend in the retail industry, where companies are recognizing the importance of creating relevant and emotionally-connected experiences for customers. By embracing AI and expanding into the wellness category, Ulta Beauty is positioning itself for continued growth and success in a rapidly evolving market.

The details

Ulta Beauty is utilizing first-party data from its robust loyalty program, which accounts for 95% of the company's sales, to inform decisions across marketing, merchandising, and operations. The company is now focusing on understanding customer motivations and behaviors, rather than relying on traditional demographic targeting, to deliver more personalized recommendations and foster stronger emotional connections. Ulta Beauty is also actively exploring the potential of AI to further enhance the customer experience, including developing its own AI agents to leverage existing customer data and provide tailored product suggestions.

  • Ulta Beauty's wellness category expansion was formalized in 2021 with the launch of Wellness by Ulta Beauty.
  • Ulta Beauty executives discussed the company's AI plans at NRF's Big Show in January 2026.

The players

Ulta Beauty

A beauty retailer that is positioning itself as a technology-driven consumer experience company, with a focus on leveraging artificial intelligence and personalization to drive customer loyalty.

Kelly Mahoney

Chief Marketing Officer at Ulta Beauty, who detailed the company's focus on data-driven insights and motivation-based segmentation strategy.

Kecia Steelman

CEO of Ulta Beauty, who emphasized the potential of AI to deliver a 'one-on-one' shopping experience for customers.

Josh Friedman

Senior Vice President of E-commerce and Digital at Ulta Beauty, who revealed the company's efforts to develop its own AI agents.

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What they’re saying

“A consumer really starts to fall in love when they say, 'Hey – you know me. You understand my needs,'”

— Kelly Mahoney, Chief Marketing Officer (The Speed of Culture podcast)

What’s next

Ulta Beauty is actively developing its own AI agents to improve personalization for loyalty members, though the specific roadmap remains in progress.

The takeaway

Ulta Beauty's strategic pivot towards data-driven personalization and technological innovation, including the use of AI, reflects a broader trend in the retail industry where companies are recognizing the importance of creating relevant and emotionally-connected experiences for customers. By embracing these strategies, Ulta Beauty is positioning itself for continued growth and success in a rapidly evolving market.