Daily Newsletter

31 August 2023

Daily Newsletter

31 August 2023

Estée Lauder to use Google Cloud’s generative AI

The partners will jointly explore AI-powered solutions to understand consumer sentiment and inform R&D efforts.

Jangoulun Singsit August 30 2023

The Estée Lauder Companies has partnered with Google Cloud to transform the online consumer experience with generative artificial intelligence (AI).

The partners will jointly explore AI-powered solutions to better understand consumer sentiment and inform research and development (R&D) efforts.

The solutions will enable Estée Lauder to proactively address consumer concerns, act on external trends and enhance consumer experiences.

In addition, the cosmetic company is creating new-gen AI business applications on Google Cloud's AI platform, Vertex AI.

The applications will benefit the company as they can improve productivity and reduce operating costs by simplifying operations and business workflows.

Estée Lauder will also implement Google's large language model (LLM), PaLM 2, to better apprehend consumer sentiment on social media platforms, call centre operations and other brand channels.

The Estée Lauder online EVP Gibu Thomas said: "At The Estée Lauder Companies, we aim to delight consumers with transformative products and services. Through our collaboration with Google Cloud, we are creating high-touch, personalised experiences online that our consumers expect from every interaction with our brands.

"By working with Google Cloud's generative AI technologies, our data science teams are unlocking new ways to serve our consumers."

The announcement is in addition to the multi-year partnership between the two companies. Under this collaboration, Estée Lauder and its development partner Eviden have implemented a data analytics platform.

ELC also leverages Vertex AI, BigQuery, Looker and other Google Cloud technologies to better serve its consumers' experiences across more than 40 nations for more than 20 brands.

Google Cloud CEO Thomas Kurian said: "The beauty market is undergoing a significant transition, with heightened consumer expectations, ever-changing trends and a shift to personalisation. Our work with The Estée Lauder Companies to build a foundational data platform is now helping drive new generative AI use cases that will transform the consumer experience and the beauty industry overall."

APAC duty-free market expected to grow fastest, fueled by rising income levels and international travelers

Per latest GlobalData estimates, the global duty-free market retailing market was valued at $49 billion in 2022, its highest level ever as it bounced back from the pandemic impact, and is expected to grow at a CAGR of more than 28% during the period 2020-2026, driven by government initiatives, rising passenger numbers, major global events (for instance global sporting tournaments) and the renewed popularity of cruise trips. Infrastructure investments will also play an important role, particularly airport expansion and space refurbishment, and investments in arrivals duty-free formats.

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