How L'Oreal is Using Generative AI to Transform Its Marketing - Latest Global News

How L’Oreal is Using Generative AI to Transform Its Marketing

Good companies are always looking for ways to use the latest technology to transform themselves. For decades, L’Oreal Group is a leader in the beauty industry and now wants to use AI to revolutionize the industry.

With 37 global brands, the company addresses the needs of modern consumers with innovative marketing and cutting-edge technology. L’Oreal is using generative artificial intelligence to transform the way it interacts with customers.

Through partnerships with technology companies like Nvidia Corp. and experimenting with over 800 AI-generated beauty images, L’Oreal explores new beauty paradigms. The company envisions a future where mirrors are digitally connected, beauty products are powered by technological innovations, and robots run salons. This AI-powered vision was outlined in a recent talk Nvidia GTC 2024 sessionwhere L’Oreal Chief Digital and Marketing Officer Asmita Dubey shared insights on how generative AI is being used to improve marketing in the beauty sector.

Dubey said L’Oreal is focusing on three key areas when integrating generative AI into its operations: science, technology and creativity. These include the company’s Generative AI Task Force and the GenAI Content Lab. The task force is responsible for a framework that outlines the “guidelines” and “do’s and don’ts” of generative AI. At the same time, the Content Lab serves as an innovation center to “stimulate creativity” through technology.

More specifically, the Generative AI Task Force identifies potential applications and use cases for the technology within the organization. The task is also to upskill employees to ensure they have the necessary knowledge and skills to use AI effectively. Finally, it fosters a community within L’Oreal that spreads knowledge about AI throughout the company.

The GenAI Content Lab is a creative experimental space for producing beauty content. It promotes collaboration across a network of partners and explores service models for AI-powered creativity. The GenAI Content Lab also sets guidelines and ethical standards for the use of AI. For example, L’Oreal does not use AI-generated images of faces, skin, bodies, or hair to mismarket its products. Instead, the company uses AI internally for brainstorming, design and planning.

By experimenting with generative AI, L’Oreal produces relevant and engaging marketing content. The technology has proven effective in scaling product shots and background production, significantly reducing the resource requirements of traditional photoshoots. Beyond still images, L’Oreal is also exploring video generation to improve visual marketing.

L’Oreal used Nvidia’s Omniverse Platform for creating detailed 3D models of its products that can be placed in different contexts and environments. The benefit is two-fold: it significantly reduces the amount of time and resources traditionally spent on photoshoots while providing flexibility in presenting products on different media platforms.

Omniverse enables easy contextual adjustments to make images more suitable for social media and e-commerce. According to Dubey, this was a turning point for L’Oreal in the fast-paced world of beauty marketing.

“We believe technology can push the boundaries of what is possible,” Dubey said. “We can cater to the infinite variety of beauty needs and therefore also offer our consumers high-quality beauty services. We know that 70 percent of consumers are overwhelmed by the abundance of beauty choices. That’s why we offer them beauty services that can help them overcome this challenge.”

One such service is Beauty Genius, a virtual beauty advisor that makes it easier for consumers to choose beauty products. Built with AI and augmented reality technologies from ModiFaceBeauty Genius, a company acquired by L’Oreal in 2018, offers personalized skin analysis and allows users to virtually “try on” makeup. It also offers personalized product recommendations with a choice of more than 750 options in skin care, makeup and hair care. Finally, by aggregating content from L’Oreal-branded websites and social media, Beauty Genius is an educational resource that provides consumers with beauty advice and tips.

L’Oreal adapts to changes in content creation by collaborating with more than 50,000 influencers and creatives who are experts in AI, AR, virtual reality and 3D modeling. These partnerships are global and have a strong presence in markets such as China. They cover popular platforms such as Meta Platforms Inc.’s Facebook and Instagram, TikTok and Snapchat, reaching a wide range of consumers.

Going forward, L’Oreal will focus on three areas: improving technology readiness, ensuring AI is adaptable and modular, and effectively managing brand data. The goal is to combine human creativity with AI and personalize beauty through technology. According to Dubey, this shows L’Oreal’s commitment to leveraging new technologies to lead the beauty sector and provide tailored beauty services to consumers.

One of GTC’s themes was that AI would transform every aspect of our lives, and the show provided many use cases in healthcare, smart cities and scientific discoveries. I liked the L’Oreal presentation because it shows how GenAI can be easily used by the masses to transform the way consumers interact with the brands they love and use every day.

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