AI Revolutionizes Consumer Products: L’Oreal and Nestle Lead the Way

French cosmetics giant L’Oreal has leveraged artificial intelligence (AI) to identify molecules in its skincare products that can be repurposed for use in shampoo. This innovation allows the company to create new products four times faster than before, according to a senior executive speaking with Reuters.

Consumer goods companies such as Nestle, Haleon, and Mondelez are increasingly using AI in product development. These firms leverage AI to test ingredients more quickly, generate recipe ideas, and address supply chain vulnerabilities, executives have noted.

The push towards integrating AI into product development is driven by the need for consumer goods companies to innovate faster and reduce costs amid shifting consumer preferences. L’Oreal has been utilizing AI since four years ago, identifying new molecules for beauty products by predicting their effects on skin and hair. Fabrice Megarbane, president of its consumer products unit, highlighted how AI allows for a more rapid development process, enabling the creation of new molecule associations and benefits.

L’Oreal’s CEO, Nicolas Hieronimus, introduced a “beauty stimulus plan” last year to boost innovation following slower sales growth. The company aims to enhance product offerings through AI-driven insights.

At Mondelez, Chief Information and Digital Officer Filippo Catalano emphasized that AI is transforming the recipe development process at the chocolate giant. This technology has enabled faster processes and innovative recipes, including those for Gluten Free Golden Oreo cookies and a refreshed formula for Chips Ahoy cookies. The firm reported that 60% of its biscuit recipes developed using AI outperformed others in areas such as nutrition, sustainability, and cost.

AI is essentially compressing the time it takes to develop products from months or years down to weeks, according to Catalano.