Rongchai Wang
Mar 05, 2025 05:38
Estée Lauder collaborates with Microsoft to create a generative AI ecosystem, enhancing trend forecasting and marketing in the beauty industry.
In a pioneering move, The Estée Lauder Companies Inc. (ELC) has teamed up with Microsoft to leverage artificial intelligence (AI) for transforming trend forecasting and consumer marketing strategies. This collaboration aims to create a generative AI ecosystem that accelerates the identification of beauty trends, marketing asset development, and research processes, according to Microsoft News.
Harnessing AI for Competitive Advantage
With nearly 80 years of experience in the beauty industry, Estée Lauder has a wealth of consumer data at its disposal. The company is utilizing Microsoft 365 Copilot, along with Azure OpenAI Service and Azure AI Search, to build a robust AI infrastructure. This system, notably featuring ConsumerIQ, will enable employees to access and analyze consumer data efficiently, thus enhancing the company’s ability to respond swiftly to market shifts.
ConsumerIQ, a tool developed within Copilot Studio, allows Estée Lauder to tap into its extensive consumer data from surveys, clinical trials, and product usage. This data-driven approach ensures that marketing teams can quickly adapt to trends, such as those spurred by influencers on platforms like TikTok, by utilizing historical data to inform new product developments or marketing strategies.
Streamlining Processes with Trend Studio
In addition to ConsumerIQ, Estée Lauder is developing Trend Studio, an AI-powered tool designed to further streamline the marketing process. By using Azure AI technologies, Trend Studio can detect emerging market trends, recommend products, and generate tailored marketing content. This system aims to reduce the time from trend detection to market response, empowering Estée Lauder to maintain a competitive edge in the fast-paced beauty industry.
Trend Studio also includes Virtual Try-On Technology, enhancing customer experience by allowing consumers to visualize how products will look before purchase. This integration of AI not only accelerates decision-making but also simplifies employee workflows by reducing repetitive tasks.
Strategic Vision and Future Prospects
Estée Lauder’s embrace of AI is part of a broader strategic vision, known as “Beauty Reimagined,” which seeks to make the company more agile and efficient. By integrating AI solutions, Estée Lauder is positioning itself to capitalize on the potential $9 billion to $10 billion impact of generative AI on the global beauty industry, as reported by McKinsey & Company in early 2025.
Future expansions of this AI platform could include modules for streamlining manufacturing training and other operational processes, further enhancing Estée Lauder’s ability to compete and innovate. This forward-thinking approach underscores the company’s commitment to staying at the forefront of the beauty sector.
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