Microsoft and Estee Lauder launch AI Innovation Lab

Microsoft and Estee Lauder have launched an AI Innovation Lab to bring GenAI to the beauty industry. The lab allows both companies to work together on creating AI solutions for Estee Lauder’s beauty brands. 

Using Microsoft’s Azure OpenAI service, Estee Lauder has already developed an AI chatbot for marketing use. 

Outside of marketing, Estee Lauder also confirmed that it was working with Microsoft to create AI tools for product R&D intended to be used by its scientists and product development team.

With the AI Innovation Lab, ELC hopes to have a faster response and execution time to social trends and consumer demands as well as have faster and more effective product innovation capabilities.

The AI Innovation Lab includes an internal-facing generative AI chatbot to enhance marketing effectiveness globally. The tool uses advanced conversational AI technology to navigate and leverage ELC’s database of products, allowing brands to launch locally relevant campaigns quicker.

“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 Microsoft’s corporate VP of global industry solutions, Shelley Bransten.

“We are 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,” she added.

AI tools included in the Innovation Lab will also help research and development teams develop products faster so that scientists and product development specialists to respond to emerging product and ingredient trends more rapidly.

In a 2024 survey conducted by research and analysis company GlobalData, 40% of businesses across a variety of sectors answered that AI had already significantly disrupted their sector.

A further 13% answered that they expected AI to disrupt their sector in the next 12 months.

In its 2024 AI market forecast, GlobalData anticipated GenAI will be the fastest growing segment of AI. By 2027, it forecast that global GenAI revenues could exceed $33bn, achieving a compound annual growth rate of 80% from 2022.

Discussions with our customers have revealed that they benefit from faster response and execution to social trends and consumer demands, with our platform enabling rapid and more effective product innovation. In addition, our customers save on manual processes, reduce costs and improve decision-making on product features. Get a copy of the full study to find out more about the key findings, benefits and more.