Estée Lauder Companies Inc. (ELC) has turned to artificial intelligence to reshape its approach to beauty trends. The company revealed its collaboration with Microsoft 365 Copilot to revolutionise trend forecasting and marketing in April 2024.
Estée Lauder is harnessing AI to drive efficiency, expedite product development, and sharpen its competitive edge in the dynamic beauty industry.
Harnessing AI for Speed and Precision
Beauty trends can change in the blink of an eye, making swift responses essential. A trending moisturiser or lip gloss on TikTok today may be forgotten tomorrow. Traditionally, the process of gathering and analysing consumer insights was slow, but Estée Lauder is now speeding things up with AI.
The company has launched ConsumerIQ, an intelligent agent powered by Microsoft’s Copilot Studio, designed to provide instant access to a broad array of consumer data—from surveys and clinical trials to promotional insights.
“Bringing the information to the fingertips as opposed to waiting for somebody to go research and bring that output three days later,” says Jayesh Mehta, a brand technology leader at Estée Lauder and a member of its AI Task Force. With ConsumerIQ, marketing teams can obtain essential data in real time, allowing for quicker, more informed decisions.
Utilising ConsumerIQ to Make Smarter Decisions
Retrieving marketing insights used to be a lengthy process, taking hours or even days. But with ConsumerIQ, Estée Lauder has transformed that process into a straightforward task—simply ask a question.
The AI tool centralises and analyses data across all of Estée Lauder’s brands and regions, streamlining the tracking of trends and the refinement of marketing strategies.
For instance, if a beauty influencer begins promoting an organic lip gloss on social media, the team can quickly pull insights on consumer preferences and product performance.
The AI will then suggest whether to focus on an existing product like the Blooming Shine Nourishing Lip Glaze from the sustainable Origins brand, or create something new.
“This is now as simple as asking a question and getting an answer,” Mehta explains. By reducing the time spent searching for insights, employees are able to prioritise high-impact marketing strategies and react faster to consumer needs.
Using Trend Studio for AI-Powered Insights
Estée Lauder’s AI efforts extend beyond ConsumerIQ with the introduction of Trend Studio, a tool powered by artificial intelligence that detects beauty trends, recommends products, and automatically generates marketing content.
Estée Lauder’s Consumer Insights Team has diligently studied customer behaviour and trends for years. However, with the help of Trend Studio, it uses the gathered information to its full potential by leveraging AI to identify emerging beauty movements and match them with the company’s product portfolio. The tool also automates everything from crafting marketing copy to incorporating Virtual Try-On Technology, speeding up the product launch process.
“Beauty startups may be able to leap on the latest TikTok trend, but they don’t have 80 years of market knowledge like Estée does,” says Kalindi Mehta, global vice president for consumer foresight, strategy, and predictive analytics at Estée Lauder. “And now Estée has the technology to harness it.”
Trend Studio is directly contributing to Estée Lauder’s ongoing corporate transformation by streamlining workflows and accelerating decision-making. The company’s goal is clear: move faster, work smarter, and stay ahead of the competition.
AI’s Growing Influence in the Beauty Industry
According to a McKinsey & Company report from January 2025, the impact of generative AI could generate £9 billion to £10 billion globally for the beauty market. Estée Lauder’s AI investments are part of a much larger shift in the beauty industry.
Estée Lauder and Microsoft announced the launch of an AI Innovation Lab—a dedicated space for exploring new AI-driven solutions to enhance customer experiences, streamline product development, and improve operational efficiency.
“Generative AI 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,” says Shelley Bransten, Microsoft’s corporate vice president for Global Industry Solutions.
The Future of AI at Estée Lauder
AI is already reshaping Estée Lauder’s marketing and trend forecasting, but the company sees even greater potential in its future applications. The technology could soon extend to areas like manufacturing, employee training, and improving operational efficiencies.
For example, instead of sifting through complex training manuals, employees could ask an AI assistant for step-by-step instructions on specific tasks. This kind of innovation would further enhance speed, efficiency, and competitiveness throughout the company.
“It’s really increasing our speed to be able to compete in the marketplace,” says Jennifer Lee, director of strategic initiatives and predictive analytics at Estée Lauder.
Conclusion
Estée Lauder is integrating AI as a foundational element of its future strategy. Through tools like ConsumerIQ and Trend Studio, the company is proving how AI can drive transformation in the beauty industry—enhancing decision-making, boosting efficiency, and helping brands stay ahead of ever-evolving consumer trends.
The beauty brand is well-positioned to continue leading the charge in innovation, reshaping the beauty industry, and establishing new industry standards for AI-powered marketing and product development.