The buzz around artificial intelligence has touched nearly every industry, from technology to restaurants, and the beauty industry is no different.

Oddity, a data-driven beauty platform, is among the companies that have taken a keen interest in utilizing AI technology. The Il Makiage and SpoiledChild parent company recently announced it acquired Boston-based Revela, a biotech startup that uses an AI-powered tool to explore ingredients and research new formulations.

The deal, valued at $76 million, is Oddity's largest acquisition to date and will be accompanied by an additional $25 million investment to fund Oddity Labs, a biotechnology center.

"We're doubling down on this innovation, but this time in using biotechnology in order to discover the most exciting, promising, functional ingredients for consumers," Oddity CFO Lindsay Drucker Mann told Yahoo Finance Live (video above). "This is technology that's already been proven out in pharma. Today, we're harnessing that power and unleashing it for beauty and wellness indications."

The total investment of over $100 million aims to bring AI-based molecule discovery, which is commonly used in pharmaceutical drug development, to boost research and development for cosmetics and other beauty products.

Revela's AI tool will help researchers better identify and test new molecules that can solve customer pain points, Oddity said in a statement. It will also speed up the discovery process, Drucker Mann said, which otherwise relies on a lot of trial and error.

"Now, with AI, you are turbocharging your ability to explore those ingredients, extrapolating from thousands to a billion plus, and see which ones are most likely to elicit the desired response from the cell," she said.

Although the beauty category is booming right now, Drucker Mann said she believes the beauty industry has fallen behind when it comes to innovation and ingredient development.

"It's an amazing category, and there's so much opportunity for growth," she said. "But the truth is that, as it relates to product innovation and ingredient development, the industry is falling behind the curve. And actually, most of what we use today in top-performing... hair products or skin products, they're the same remixed, repackaged, old ingredients that have been around for decades."

Drucker Mann explained that it's not just artificial intelligence that will move the beauty industry forward but other forms of technology like synthetic biology and robotics.

"A number of these enabling technologies have achieved a threshold level that actually lets us bioengineer solutions that were never possible before," she said. "We know those solutions exist. We see them in pharma. They have not ever been invested in and uncovered for beauty and wellness."

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