Microsoft and Estee Lauder launched an AI Innovation Lab to bring GenAI to the beauty industry.
The lab allows the two companies to work together to create AI solutions for Estée Lauder beauty brands.
Thanks to Microsoft’s Azure OpenAI service, Estée Lauder has already developed an AI chatbot for marketing use.
The chatbot will be used internally by Estée Lauder employees to monitor global beauty trends and navigate the company’s product and complaints database, the company said.
Estée Lauder said it hopes this will allow its beauty brands to launch more personalized local advertising campaigns more quickly.
Outside of marketing, Estée Lauder also confirmed that it is working with Microsoft to create AI tools for product R&D for use by its scientists and product development team.
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By GlobalData
“At (Estée Lauder), technology continues to support our enduring strengths in high-quality products and high-touch consumer experiences,” said Jane Lauder, the company’s chief data officer.
“With Microsoft’s GenAI tools and our extensive expertise, we are able to leverage Estée Lauder’s powerful data to create more personalized consumer experiences and faster insights into action, resulting in faster time to market and stronger local relevance,” she added.
Estée Lauder began collaborating with Microsoft in 2017 and has already used Microsoft’s Azure AI in a virtual makeup assistant app launching in 2023.
Estée Lauder said its AI Innovation Lab marked a deepening of relationships between the companies.
“GenAI 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,” said said Shelley Bransten, vice president of Worldwide Industry Solutions at Microsoft. .
“We are proud to collaborate with The Estée Lauder Companies to provide not only a platform for AI innovation, but also a deep partnership to bring these new innovations to life,” she added.
In a 2024 survey by research and analytics firm GlobalData, 40% of companies across various industries responded that AI has already significantly disrupted their industry.
An additional 13% responded that they expected AI to disrupt their industry in the next 12 months.
In its AI market forecast for 2024, GlobalData predicts that GenAI will be the fastest growing AI segment. By 2027, it predicts that GenAI’s global revenues could exceed $33 billion, reaching a compound annual growth rate of 80% from 2022.
