AI and AR subscriptions from Perfect Corp. fuel revenue expansion
In the rapidly evolving world of retail technology, Perfect Corp. is making significant strides. The company recently expanded its presence in the virtual try-on space through the acquisition of Wannaby from Farfetch, marking a bold move in the AI and augmented reality (AR) tech landscape.
The second quarter of this year saw Perfect Corp.'s subscription revenue for AI and AR tech soar to $14.9 million, representing a 15.6% growth. This growth is primarily driven by the popularity of photo- and video-based generative AI features in the company's B2C subscriptions.
As the market trend shows, AI shopping agents are rapidly mainstreaming and becoming mission-critical in retail. These AI agents have evolved into autonomous, proactive digital assistants that guide users through discovery, personalize recommendations in real-time, and help reduce purchase hesitation, thus boosting conversion rates and average order values. The AI shopping agent market is projected to reach $47 billion by 2030, growing nearly 45% annually, reflecting extensive integration into ecommerce and digital marketing strategies.
In terms of user trust, AI shopping agents are increasingly trusted because they go beyond reactive chatbots to anticipate customer needs using behavioral and contextual data, providing emotionally intelligent, one-on-one experiences. Their ability to deliver relevant, personalized, and confidence-building product guidance reduces returns and increases customer lifetime value, which further builds consumer trust.
By contrast, virtual try-on technology for beauty and fashion brands—while a significant part of the AI and retail tech landscape—is generally seen as a complementary innovation focused on enhancing product visualization and customer experience through AR. It primarily addresses consumers’ trust in product fit, color accuracy, and style before purchase. Although virtual try-on tech improves engagement and decreases hesitation by simulating real-world product use, it does not match AI shopping agents in terms of autonomous interaction, decision-making, or integration across customer journeys.
Perfect Corp. provides virtual try-on tech across skin care, makeup, clothing, and more, and has over 800 fashion and beauty brands using its digital experiences. A recent survey found that virtual try-on technology can lead to a 2.5 times increase in sales conversion. The company also increased its footprint in the med spa sector.
However, consumer trust issues are hindering the takeover of AI in the shopping journey. Over 2 in 5 Americans express no trust in AI shopping agents, according to a YouGov survey. Perfect Corp.'s clients are approaching AI with caution due to broader macroeconomic uncertainty. The company maintains a "prudent near-term outlook" for its business-to-business operations.
In summary, for 2025, AI shopping agents lead the market trend in AI-driven retail innovation and user trust focused on personalized engagement and purchase facilitation. Virtual try-on tech, while valuable for enhancing visual confidence in beauty and fashion purchases, is more niche and complementary. The growth in revenue for Perfect Corp. is attributed to consistent revenue growth from the YouCam mobile app, web service subscriptions, and the popularity of generative AI and editing tech for photos and videos.
- Artificial Intelligence (AI) is playing a significant role in the business and retail sectors, with AI shopping agents becoming mission-critical in retail and projected to reach $47 billion by 2030.
- Meanwhile, Perfect Corp., known for its virtual try-on tech, is experiencing growth in its subscription revenue for AI and AR technology, driven by the popularity of generative AI features in their B2C subscriptions.
- Despite the advancements in virtual try-on technology for beauty and fashion brands, consumer trust in AI shopping agents seems to be more crucial for the market trend, as these AI agents offer personalized, one-on-one experiences and aid in decision-making across customer journeys.
