French cosmetics company L'Oreal has used artificial intelligence to identify molecules in its skincare products that can be repurposed for shampoo, enabling the company to create new products four times faster than before, a senior executive told Reuters. The announcement was made at the Consumer Goods Forum's Global Summit in Vienna in late June.
AI Accelerates Product Development Across Consumer Goods
Consumer companies including Nescafe owner Nestle, Sensodyne toothpaste maker Haleon, and chocolate maker Mondelez are integrating AI into product innovation. The technology helps test ingredients faster, generate recipe ideas, and address supply chain vulnerabilities, executives said. The push comes as consumer goods companies face pressure to innovate faster and cut costs amid shifting consumer tastes.
L'Oreal, which started using AI in its labs four years ago, has identified new molecules for beauty products by predicting their effects on skin and hair, said Fabrice Megarbane, president of its consumer products unit. The company's recent innovation involved repurposing molecules used in skincare for a shampoo that uses collagen to add lift and fullness to hair.
L'Oreal's Beauty Stimulus Plan Drives AI Adoption
L'Oreal CEO Nicolas Hieronimus launched a "beauty stimulus plan" last year to spur innovation after the company posted its slowest group sales growth in years. Megarbane emphasized the speed advantage: "You can really go much faster by imagining ... new associations of molecules and new benefits of molecules."
Mondelez Finds AI a 'Game-Changer' for Recipe Development
Human product innovation augmented by AI is a "game-changer" at chocolate maker Mondelez, Chief Information and Digital Officer Filippo Catalano told Reuters. The technology has helped the Cadbury and Toblerone owner speed up processes and reimagine recipes. AI can create recipes, including "out-of-the-box" ideas, which a human expert assesses.
"You can optimise how you develop your recipes," Catalano said, pointing to reduced dependency on single sourcing in supply chains and the ability to adapt formulas to changing consumer tastes. Mondelez's AI tool is reducing the number of samples typically generated through innovation. It helped develop Gluten Free Golden Oreo cookies and a refreshed recipe for Chips Ahoy cookies.
In the biscuit category, 60% of recipes produced using the AI tool performed better in areas such as nutrition, sustainability, and cost. Catalano noted that AI is "accelerating things you could do already, but compressing the time from months to weeks or years to months."
AI's Growing Role in Consumer Goods Innovation
The adoption of AI in product development is becoming widespread among consumer goods companies. Nestle and Haleon are also leveraging AI to test ingredients faster and improve supply chain resilience. The technology enables companies to respond quickly to evolving consumer preferences while reducing costs and time to market.
