Estée Lauder Leverages Generative AI to Meet Evolving Consumer Needs

Estée Lauder Companies (ELC) is deepening its partnership with Google Cloud in an exciting development. Far from just a big player's strategic move,

I view this collaboration as a novel approach for gathering more nuanced consumer data by closely monitoring responses on social media channels and customer service feedback 1.

This partnership taps into generative AI, which allows ELC to react to the demanding and fast-changing consumer tastes. Part of this demand surge arises from the significant influence of social media, where popular influencers can create sweeping beauty trends, forcing brands to respond faster and more creatively 1.

ELC's plan isn't restricted to general observations; the generative AI will assist the company in better understanding ethnically diverse customers, thus driving it to create better-suited products. This move acknowledges the rich tapestry of consumers worldwide, whom standardised products may have overlooked in the past 1.

Their alliance with Google Cloud uses PaLM 2, an inventive large language model (LLM), to microanalyze customer sentiment. Far beyond simple number crunching or generic surveys, this strategy could help ELC get a real-time view of evolving preferences on platforms such as social media and call centres 1.

Despite the excitement, tempering expectations about generative AI and seeing how it unfolds is essential. This technology has vast implications for the beauty and cosmetics industry, promising speedy content creation from enormous amounts of data, aiding consumer sentiment tracking, research, and development goals. As I see it, the challenge is ensuring that the technology is adopted in a way that respects privacy and creates actual value for customers. 1.

In the age of constant digital transformation, small companies should note how ELC integrates generative AI. Even on a smaller scale, they might use similar strategies to learn up close from the changing implications of consumer behaviour. Indeed, the benefits of generative AI shouldn't be confined to just the big players - innovation can—and should—begin anywhere 1.

Sources:

1. Source: Estée Lauder bets generative AI can keep pace with shifting consumer tastes by Marketing Dive