In a groundbreaking move that promises to reshape the beauty industry, The Estée Lauder Companies (ELC) and Microsoft Corp. have announced the creation of an AI Innovation Lab, expanding their global strategic partnership. Leveraging the cutting-edge generative AI capabilities of Microsoft’s Azure OpenAI Service, the two companies will collaborate to develop innovative solutions that empower ELC’s more than 20 prestige beauty brands, fostering closer consumer connections and accelerating speed to market with local relevancy.
The AI Innovation Lab positions both ELC and Microsoft as leaders at the forefront of reimagining the beauty industry through the transformative power of generative AI. This expanded global strategic relationship will further support and build impactful generative AI use cases across several key areas of ELC’s business.
“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. We look forward to continuing our close and collaborative partnership with Microsoft.”
Jane Lauder, EVP, Enterprise Marketing, and chief data officer at The Estée Lauder Companies
Faster Response and Execution to Social Trends and Consumer Demands
ELC and Microsoft have successfully created an internal-facing generative AI chatbot to enhance marketing effectiveness globally. This powerful tool utilizes advanced conversational AI technology to efficiently navigate and leverage ELC’s proprietary and extensive database of product and claim data, allowing brands to launch locally relevant campaigns more rapidly than ever before.
Enabling Fast and More Effective Product Innovation
The two companies are also applying generative AI tools in research and development, enabling scientists and product development specialists to respond to emerging product and ingredient trends with unprecedented speed. This cutting-edge approach will accelerate the product development process, ensuring that ELC stays ahead of the curve in a rapidly evolving market.
“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.
Shelley Bransten, corporate vice president, Global Industry Solutions at Microsoft, echoed the 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. We’re proud to collaborate with The Estée Lauder Companies to provide not only a platform for AI innovation but also deep partnership to bring these new innovations to life.”
The AI Innovation Lab represents a deepening of the strategic relationship between ELC and Microsoft, which began in 2017. As part of this long-term partnership, ELC has already tapped into Azure AI as the platform for its Voice-Enabled Makeup Assistant, a first-of-its-kind mobile app launched in early 2023 to help visually impaired users more easily and confidently apply makeup. The app is currently available on iOS and Android in the United States, United Kingdom, and Ireland, with plans to roll out to additional markets and languages in the coming months.
This collaboration between ELC and Microsoft exemplifies the transformative potential of generative AI in the beauty industry, promising to revolutionize consumer experiences, accelerate product development, and foster a more sustainable and innovative future for the sector. As the AI Innovation Lab takes shape, the world eagerly awaits the groundbreaking innovations that will emerge, redefining the boundaries of what is possible in the realm of beauty and personal care.
