Dive Brief:
- L'Oréal CEO Nicolas Hieronimus sees AI playing a key role in driving growth for the company in the year ahead, he said during the company’s Q4 2023 earnings call.
- To reach sustainability goals, the company plans to use AI and its “10,000 terabytes of beauty data” to help its researchers identify new solutions and kickstart creativity, Hieronimus said.
- “It goes without saying that AI now transcends many of the things we do,” Hieronimus said.
Dive Insight:
L'Oréal has high hopes for what AI and expanded access to data insights will do for the business.
The company’s data platform houses 10 petabytes of data, which teams use to power “all types of AI models, including the latest [large language models],” Hieronimus said during a keynote at CES in January.
L'Oréal plans to use AI to expand data-driven insights, boost researcher creativity and speed up work.
“All of it is bringing data in because this new world we’re in is a world where we’re going to be leveraging AI and we need data to fuel AI,” Hieronimus said during the call.
AI-related plans are part of nearly every organization’s strategy. Estée Lauder Companies explored various generative AI use cases submitted by employees last year. The cosmetics giant was also an early adopter of ChatGPT Enterprise. P&G worked with OpenAI’s technology as well last year, rolling out an internal generative AI tool built using OpenAI’s API.
But not all enterprises have taken the steps to put their data to work.
Most chief data officers admit to making no changes to their company’s data infrastructure to support generative AI, an AWS study published in October found.
Bad data will make bad models, so tech leaders must prioritize infrastructure upgrades. CIOs and IT leaders expect data and AI budgets to grow this year as enterprises work to clear adoption roadblocks, according to an MIT Technology Review survey of 600 tech leaders.
