Artificial Intelligence (AI) is increasingly revolutionizing the online retail of luxury cosmetics by facilitating customized product suggestions and tech-enhanced shopping experiences that cater to the specific preferences of individual consumers. This research investigates how AI-driven personalization affects consumer engagement within the luxury cosmetics e-tailing sector. A quantitative research methodology was utilized, with primary data gathered using a structured questionnaire from consumers who have purchased premium or luxury cosmetics online and have experienced AI-powered personalized features. The final analysis included 89 valid and complete responses. For data analysis, descriptive statistics, reliability analysis, Pearson correlation, and simple linear regression were applied. The results showed that AI-powered personalization and customer engagement had a favorable and statistically significant link (r = 0.492, p < 0.001). Additionally, regression research revealed that 24.2% of the variance in customer engagement was explained by AI-powered personalization (R² = 0.242). The results offer useful implications for luxury cosmetics e-tailers looking to improve client interactions through personalization and emphasize the significance of relevant and customized AI-enabled shopping experiences in boosting consumer engagement.