The Estée Lauder Companies (ELC) and Microsoft have announced the creation of an Artificial Intelligence (AI) Innovation Lab to develop and create solutions that power all of Estée Lauder's luxury beauty brands.
This new facility aims to deploy new tools to establish closer relationships with consumers and accelerate product launches.
As outlined by Microsoft, this is a global strategic relationship that will support and develop generative AI use cases that impact various areas of Estée Lauder's business:
- Faster responses and executions to social trends and consumer demands. As Microsoft explains, they have created an internal chatbot based on generative AI to improve marketing effectiveness globally.
- Driving faster and more effective product innovation: Generative AI tools are being applied in R&D to develop products faster.
"With Microsoft's generative AI tools and deep expertise, we can leverage our company's extensive data to create even more personalised consumer experiences and draw insights more nimbly. This translates into faster time to market and stronger local relevance. We are delighted to continue our close and collaborative relationship with Microsoft," said Jane Lauder, Executive Vice President, Enterprise Marketing and Chief Data Officer, ELC.
The contractual relationship between Estée Lauder and Microsoft already existed, so this new agreement signifies an extension of the strategic collaboration between the two companies that began in 2017.