Personalised AI recommendations now drive 5% of all website revenue for clients of THG Commerce, the e-commerce solutions offering of THG Ingenuity.
THG Ingenuity – which demerged from THG last year – said it had “integrated data-led AI into the customer experience” for several of its customers, with tools such as “product attribution modelling and semantic search”.
Among those AI-powered tools is the Foundation Finder, used by online beauty retailer Lookfantastic.
The tool “determines customer preference on foundation type while still ensuring perfect shade match, utilising in-house colour algorithms and data taken from Lookfantastic’s laboratory equipment”. The AI technology then recommends the user’s “perfect foundation match”.
Lookfantastic, a THG Commerce client, launched the Foundation Finder on its site in 2023. The tool has since been used 600,000 times, resulting in 73% of customers using it purchasing a new foundation brand, and 96% of customers purchasing a new product. Nearly a quarter (22%) made their first foundation purchase using the tool.
The results are significant, THG Ingenuity said, citing a YouGov survey which found 86% of UK consumers regularly purchase the same beauty products, with only 24% citing they regularly try new products and brands.
“AI is actively reshaping commerce. We’re already seeing AI used to integrate product listings, create context-driven shopping journeys, refine product recommendations, and streamline inventory management,” says Lucy Cooper, chief commercial officer at THG Ingenuity.
“With AI, we can instantly analyse customer behaviour, enabling highly tailored experiences that drive engagement, loyalty, and increased conversions. The rise of generative AI is pushing these capabilities even further, surfacing highly relevant recommendations that feel intuitive and frictionless for shoppers,” Cooper added.
THG Commerce has followed Foundation Finder with a Concealer Finder on Lookfantastic, covering 420 shades across 18 concealer products.
“AI isn’t just optimising commerce – it’s transforming it into a smart, interconnected ecosystem where personalisation, efficiency and innovation converge. Brands that fully embrace AI will be the ones that scale smarter, operate more effectively, and build lasting relationships with their customers,” Cooper added.
THG – formerly known as The Hut Group – spun out its e-commerce arm THG Ingenuity last year, raising £95.4m from shareholders to help fund it. THG hoped the move would simplify the business, strengthen its balance sheet, and boost the stock price of the beauty and nutrition divisions of THG which continue to trade on the London Stock Exchange.
THG Ingenuity comprises THG Commerce, fulfilment services arm THG Fulfil, and THG Studios, a creative agency providing a range of services from campaigns and content creation to videography and photography. Its customers include Coca-Cola, Nestlé, L’Oréal, Mondelez and Kraft Heinz.
In February, THG Studios launched iGen, an AI-powered image creation service which brands can submit a brief to and receive image assets within 24 hours. The service includes one round of revisions and a video clip of their concept.
“AI has evolved into a core business strategy,” said Paul Harrison, creative innovation manager at THG Studios. “AI doesn’t replace experience or talent. Our strength will always lie in our people and how they use new technologies to continually innovate. We’re building a workforce of the future, where the team is fluent and confident in all aspects of AI, and are experienced in experimenting and pushing in new technology.”
No comments yet