Med Spas NAICS 812199

Sep 18, 2025 - Med Spas Face Legal Exposure as AI Adoption Outpaces Regulation

• According to a recent report in Inc magazine, artificial intelligence is rapidly transforming the medical spa industry, offering tools including AI-powered skin analysis, chatbots, predictive analytics, and automated documentation to enhance client experience and operational efficiency. However, most med spa owners are unprepared for the legal implications. Risks include unauthorized medical advice, HIPAA violations, misleading advertising, and liability gaps due to limited vendor accountability. As AI adoption outpaces regulation, businesses must proactively implement safeguards such as ensuring human oversight, vendor compliance, updated consent protocols, and staff training. Strategic, legally sound integration will distinguish successful AI-technology adopters from those exposed to reputational and financial risk.
• Indicators measuring the collective mood of US consumers showed a downward turn, with consumer confidence and consumer sentiment levels falling. Consumer confidence levels, an indicator of discretionary expenditures, declined in August 2025, month over month, falling by 1.3 points, according to the Consumer Confidence Index. Consumer confidence levels were lower in August, but remained similar to levels in the past three months, according to The Conference Board, which publishes the monthly index. August’s loss can be attributed to consumers under 35 years old, while confidence levels rose for consumers over 55. In addition, the consumer sentiment index from the University of Michigan dropped in September 2025. The index fell to 55.4 in preliminary data for September from 58.2 in August. Year over year, the index was 21% lower than September 2024’s 70.1. Year-ahead inflation expectation results held steady monthly, as consumers convey lingering anxiety about prices amid tariff impacts. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.

• The most popular non-surgical procedures performed by plastic surgeons in 2024 were botulinum toxin, hyaluronic acid (filler), hair removal, non-surgical skin tightening, and chemical peels, according to a new Global Survey on Aesthetic/Cosmetic Procedures from the International Society of Aesthetic Plastic Surgery (ISAPS). The report showed that 17.4 million surgical procedures and 20.5 million non-surgical procedures were performed by plastic surgeons in 2024, an increase of 42.5% in cosmetic procedures over the last four years. The countries that performed the most procedures were the US (6.1 million), Brazil (3.1 million), and Japan (1.6 million). In the US, the most popular non-surgical aesthetic procedures were botulinum toxin (1.7 million), hyaluronic acid (1.2 million), non-surgical skin tightening (356,072), chemical peel (170,203), and hair removal (157,756). The most common non-surgical procedure for both men and women, and among all age groups, was botulinum toxin injectables, with 7.8 million procedures performed worldwide.
• US spa revenue, locations, and visits are growing, according to the annual US Spa Industry Study report results in Skin Inc. The study is commissioned by the International SPA Association (ISPA), which includes med spa members, and conducted by PwC. Overall revenue at US spas increased 5.8% in 2024 to $22.5 billion year over year. Total spa visits rose 3.1%, reaching 187 million in 2024, while the number of spa locations grew year over year 0.6% to 21,980 in 2024. The report noted that 30% of properties surveyed said they’d renovated their retail in 2024, and 25% had improved their treatment rooms. Revenue per visit also grew 2.6% year over year in 2024, reaching $120.30 in 2024. In addition, spa industry employment increased 1.6% year over year in 2024.