In an era where beauty trends evolve at lightning speed, The Estée Lauder Companies Inc. (ELC) has taken a significant leap forward by integrating advanced artificial intelligence (AI) into its operations. Through a strategic partnership with Microsoft, ELC has developed ConsumerIQ, a custom AI agent designed to centralize data, generate insights, and accelerate decision-making across its global business. (news.microsoft.com)
With nearly 25 brands operating in over 150 countries, ELC generates an immense volume of consumer and market data. Historically, this data was dispersed across various platforms and formats, making it challenging for employees to access and utilize information efficiently. Recognizing the need for a more streamlined approach, ELC collaborated with Microsoft to create ConsumerIQ. Built using Microsoft Copilot Studio and powered by Azure OpenAI Service, ConsumerIQ acts as an internal intelligence hub that employs natural language processing and generative AI to analyze ELC’s vast data ecosystem. (news.microsoft.com)
Jayesh Mehta, a brand technology leader at Estée Lauder and a member of its AI Task Force, highlighted the efficiency brought by ConsumerIQ:
Jane Lauder, EVP of Enterprise Marketing and Chief Data Officer at The Estée Lauder Companies, emphasized the significance of this partnership:
As AI continues to advance, its applications in trend forecasting, product development, and consumer engagement are likely to expand, offering new opportunities for innovation and growth. ELC’s proactive approach positions it at the forefront of this transformation, demonstrating the potential of AI to revolutionize traditional business models.
In conclusion, The Estée Lauder Companies’ partnership with Microsoft and the development of ConsumerIQ exemplify how AI can be effectively integrated into corporate strategies to drive efficiency, innovation, and market responsiveness. As the beauty industry continues to evolve, such technological collaborations will be instrumental in shaping its future landscape.
Source: Retail Asia Estée Lauder Companies uses custom AI agent to centralise data
With nearly 25 brands operating in over 150 countries, ELC generates an immense volume of consumer and market data. Historically, this data was dispersed across various platforms and formats, making it challenging for employees to access and utilize information efficiently. Recognizing the need for a more streamlined approach, ELC collaborated with Microsoft to create ConsumerIQ. Built using Microsoft Copilot Studio and powered by Azure OpenAI Service, ConsumerIQ acts as an internal intelligence hub that employs natural language processing and generative AI to analyze ELC’s vast data ecosystem. (news.microsoft.com)Functionality and Impact
ConsumerIQ connects scattered information—from spreadsheets and PDFs to presentations—and delivers clear, actionable insights in real time. This capability enables employees to quickly access information, reducing analysis time from weeks to minutes, and supports rapid innovation and agile marketing strategies. For instance, if an influencer is raving about an organic lip gloss on TikTok, a marketing team can tap into the company’s decades of data to learn how customers use lip gloss in markets around the world. They can then market one of their own, like Blooming Shine Nourishing Lip Glaze from ELC’s sustainable Origins brand, or develop a new one. (news.microsoft.com)Jayesh Mehta, a brand technology leader at Estée Lauder and a member of its AI Task Force, highlighted the efficiency brought by ConsumerIQ:
“This is now as simple as asking a question and getting an answer. Bringing the information to the fingertips as opposed to waiting for somebody to go research and bring that output three days later.” (news.microsoft.com)
Strategic Vision: Beauty Reimagined
The development of ConsumerIQ aligns with ELC’s broader corporate vision, "Beauty Reimagined," which aims to make the company leaner, faster, and more agile. Early on, leaders recognized the role AI, and specifically Microsoft Copilot and agents, could play in driving transformative innovation, bold efficiencies, and a reimagination of how ELC operates. With Microsoft’s assistance, Estée Lauder is leveraging the speed and power of AI to help drive change and growth. (news.microsoft.com)The AI Innovation Lab
In April 2024, ELC and Microsoft announced the creation of an AI Innovation Lab, further expanding their strategic partnership. This lab focuses on developing generative AI tools to support ELC’s more than 20 prestige beauty brands. The collaboration aims to create more personalized consumer experiences and faster insights to action, resulting in increased speed to market and stronger local relevancy. (dlit.co)Jane Lauder, EVP of Enterprise Marketing and Chief Data Officer at The Estée Lauder Companies, emphasized the significance of this partnership:
“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.” (dlit.co)
Enhancing Trend Forecasting and Product Development
Beyond data centralization, ELC is utilizing AI to reimagine trend forecasting and consumer marketing. By leveraging Microsoft 365 Copilot, Copilot Studio, Azure OpenAI Service, and Azure AI Search, the company gathers data, identifies trends, builds marketing assets, informs research, and accelerates the time-to-market for products. This approach allows ELC to respond rapidly to the fickle tastes of consumers, ensuring that products remain relevant and appealing. (news.microsoft.com)Future Prospects and Industry Implications
The integration of AI into ELC’s operations represents a significant shift in the beauty industry, highlighting the growing importance of technology in consumer goods sectors. By harnessing AI, ELC not only enhances its internal processes but also sets a precedent for other companies aiming to stay competitive in rapidly evolving markets.As AI continues to advance, its applications in trend forecasting, product development, and consumer engagement are likely to expand, offering new opportunities for innovation and growth. ELC’s proactive approach positions it at the forefront of this transformation, demonstrating the potential of AI to revolutionize traditional business models.
In conclusion, The Estée Lauder Companies’ partnership with Microsoft and the development of ConsumerIQ exemplify how AI can be effectively integrated into corporate strategies to drive efficiency, innovation, and market responsiveness. As the beauty industry continues to evolve, such technological collaborations will be instrumental in shaping its future landscape.
Source: Retail Asia Estée Lauder Companies uses custom AI agent to centralise data