In a move that's set to redefine the beauty industry, The Estée Lauder Companies (ELC) and Microsoft Corp. have announced the establishment of an AI Innovation Lab. This expansion of their global strategic relationship aims to leverage cutting-edge generative AI capabilities within Microsoft’s Azure OpenAI Service to develop solutions that empower ELC's 20+ prestige beauty brands. The focus? Strengthening consumer connections and increasing speed to market with local relevancy.
ELC and Microsoft are set to explore a variety of areas where generative AI can make a significant impact. From faster response times to social trends and consumer demands to enabling more efficient product innovation, the potential is vast. One notable achievement already realized is the development of an internal-facing generative AI chatbot. This tool enhances marketing effectiveness globally by utilizing advanced conversational AI technology. It efficiently navigates ELC’s extensive database of product and claim data, enabling brands to launch locally relevant campaigns more rapidly.
"At ELC, technology is always in support of our enduring strengths of high-quality products and high-touch consumer experiences," said Jane Lauder, EVP, Enterprise Marketing, and chief data officer at The Estée Lauder Companies. "With Microsoft’s generative AI tools and extensive expertise, we are able to leverage ELC’s tremendous data to create more personalized consumer experiences and faster insights to action resulting in increased speed to market and stronger local relevancy."
Shelley Bransten, corporate vice president, Global Industry Solutions, Microsoft, echoed this sentiment, 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."
The partnership between ELC and Microsoft is not new. It began in 2017, with Azure AI as the platform for ELC's Voice-Enabled Makeup Assistant, a groundbreaking mobile app launched in early 2023. This app helps visually impaired users apply makeup more easily and confidently. Now, with the establishment of the AI Innovation Lab, the collaboration is poised to push boundaries even further.
What’s most exciting about this collaboration is not just the innovative technologies being developed, but the potential to enhance consumer experiences, streamline processes, and drive meaningful change in the beauty industry. As both companies continue to explore the possibilities of generative AI, we can expect to see more groundbreaking developments in the near future.
