The Estée Lauder Companies (ELC) and Microsoft Corp. have announced plans to create an AI Innovation Lab, marking an expansion of their global strategic relationship. Leveraging the generative AI capabilities offered by Microsoft Azure OpenAI Service, the collaboration aims to pioneer solutions that will empower ELC’s portfolio of over 20 beauty brands. Through this partnership, the companies seek to establish closer connections with consumers while enhancing speed to market with local relevancy, ultimately positioning themselves as leaders at the forefront of reimagining beauty with generative AI.
ELC and Microsoft’s collaborative efforts have led to significant marketing effectiveness and product innovation advancements. The two companies have enhanced global marketing strategies by creating an internal-facing generative AI chatbot that efficiently navigates ELC’s extensive product and claim data database. This innovative tool employs advanced conversational AI technology to respond to social trends and consumer demands swiftly, enabling brands to launch locally relevant campaigns with unprecedented speed.
Furthermore, in Research & Development, ELC and Microsoft leverage the tools to accelerate product innovation. By harnessing these technologies, scientists and product development specialists can promptly adapt to emerging product and ingredient trends. This streamlined approach facilitates quicker product development cycles, fostering a culture of innovation and agility within ELC’s operations.
Shelley Bransten, corporate vice president, Global Industry Solutions, Microsoft, underscored the transformative potential of generative AI for the beauty industry, stating, "Generative AI represents a significant opportunity for the beauty industry – creating more engaging customer experiences, getting products into the hands of consumers faster, developing new products more efficiently and sustainably and much more."
ELC’s sustainability initiatives span various areas, including minimizing environmental impacts through emission reduction targets, sustainable building practices, and zero waste-to-landfill policies. They prioritize product responsibility by ensuring safety, quality, and transparency throughout their value chain, and they conscientiously source ingredients to minimize negative impacts on people and the environment.
In fiscal year 2023, the company achieved significant milestones, such as 99% FSC certification for forest-based fiber cartons and 100% carbon neutrality across Scope 1 and Scope 2 emissions. These efforts position Estée Lauder for success in an evolving global economy while contributing to the well-being of both people and the planet.
The establishment of the AI Innovation Lab signifies a strengthening of the longstanding partnership between ELC and Microsoft, which was initiated in 2017. This collaborative endeavor builds upon previous successes, such as developing the Voice-Enabled Makeup Assistant (VMA), a pioneering mobile application launched in early 2023. Utilizing Azure AI as its platform, the VMA is a groundbreaking tool to aid visually impaired users in applying makeup with ease and confidence. Currently available on iOS and Android in the United States, United Kingdom, and Ireland, plans are underway to expand its availability to additional markets and languages shortly.
