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Estée Lauder bets generative AI can keep pace with shifting consumer tastes

August 29, 2023
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  • The Estée Lauder Companies (ELC) is deepening its relationship with Google Cloud to incorporate more applications of generative artificial intelligence (AI), in keeping with a press release.  
  • The Clinique and Aramis owner will leverage generative AI to observe consumer feedback in real-time while using Google Cloud’s Vertex AI platform to streamline its internal operations. ELC will tap into PaLM 2, a big language model (LLM), to research consumer sentiment on channels like social media and call centers.
  • ELC, along with technology partner Eviden, has been working with Google Cloud to unify its data strategy as a part of a multiyear agreement. The latest development shows how generative AI is establishing a more significant place in marketers’ digital transformation bets. 

ELC, which owns the namesake Estée Lauder and greater than 20 other premium beauty brands, goes all-in on generative AI. The company is making the most of an existing relationship with Google Cloud because the search giant’s cloud-computing arm ramps up a give attention to a sector that’s exploded in popularity for the reason that advent of ChatGPT last November. The ELC announcement was made ahead of the Google Cloud Next conference today (Aug. 29).

Marketing experiments with generative AI have proliferated as more platforms and repair providers implement tools supported by the technology that can scrape troves of knowledge to provide recent content in a speedy manner. ELC’s applications will serve several purposes: to raised track consumer sentiment, inform research and development goals and simplify internal workflows while increasing productivity. 

Of particular interest to other brands could be ELC’s aim to get a greater ear on the bottom with consumers and use those insights to tell areas like product development. The beauty and cosmetics category has seen tastes increasingly driven by apps like TikTok, where viral trends come and go virtually overnight. The pressure to keep pace and appeal to social media-friendly young consumers has strained R&D departments accustomed to longer lead times and more deliberate rollout strategies, a recent Wall Street Journal story revealed. 

Generative AI is a method marketers might address the TikTok-ification of buying behaviors. ELC is making the most of Google Cloud’s PaLM 2, a LLM within the vein of ChatGPT, to enhance social listening and keep tabs on channels like call centers that can be cumbersome to observe manually. At the identical time, the marketer is hoping generative AI can end in more “high-touch digital experiences,” per the discharge. 

“The beauty market is undergoing a major transition, with heightened consumer expectations ever-changing trends and a shift to personalization,” said Thomas Kurian, CEO of Google Cloud, in a press release. 

ELC’s generative AI strategy is enabled through an existing relationship with Google Cloud. The company claims it was an early collaborator with the cloud-computing giant amongst beauty brands. ELC’s previous work with Google Cloud has involved consolidating its data into one environment, in addition to using tools like Google Cloud’s Retail Search and Recommendations AI solutions to reinforce personalization. 

Google Cloud striking generative AI deals with large businesses arrives as rivals pursue similar goals. OpenAI, ChatGPT’s developer, earlier this week unveiled a version of the LLM targeted at enterprise clients.

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