L’Oréal and IBM Partner to Revolutionize Cosmetic Formulation Processes
Image used for illustrative purposes only
L’Oréal has teamed up with IBM to leverage generative AI (GenAI) technology to transform cosmetic formulation processes. This partnership aims to enhance customer engagement and conversions through advanced AI-powered beauty solutions.
L’Oréal’s partnership with IBM introduces a custom AI foundation model designed to analyze extensive cosmetic formulation data. This model enables formulators to uncover new insights into the behaviour of renewable and bio-sourced ingredients, facilitating the creation of high-performing products that meet consumer expectations while advancing sustainability goals.
Via this partnership, L’Oréal plans to develop a custom AI foundation model that will help its R&D teams reach new levels of innovation in every cosmetic category. IBM shares that these models have significantly advanced the field of natural language processing (NLP) technology over the past several years, and that it’s now pioneering beyond language into areas such as chemistry, time series, and geospatial modalities.
The creation of these AI models will use a huge number of formulation and component data points to accelerate the creation of new products, reformulation of existing cosmetics, and optimize production. This will extend and speed up the scale of innovation and reformulation pipelines, with products reaching higher standards of inclusivity, sustainability, and personalization.
Key Benefits for Formulators
Accelerated Innovation: The AI model significantly speeds up the formulation and reformulation processes, allowing formulators to bring new products to market faster.
Sustainability Focus: By leveraging AI-driven chemistry and data analysis, formulators can design products with minimal environmental impact, aligning with L’Oréal’s commitment to sourcing most product formulas from sustainable materials by 2030.
Personalization and Inclusivity: The AI technology enables the creation of personalized beauty solutions, catering to a diverse range of skin and hair types, ensuring that every consumer feels seen and valued.
Optimized Scale-Up Production: The AI model aids in optimizing production processes, ensuring that new formulations can be scaled up efficiently and sustainably.
Enhancing Customer Engagement and Loyalty
The integration of these AI-powered solutions has significantly enhanced customer engagement and loyalty. By offering personalized and data-driven experiences, JCPenney has set a new benchmark for innovation and personalization in the beauty retail industry. According to CB Insights, AI-powered personalizations can increase customer engagement by 20% and boost conversion rates by over 30%.
The partnership between L’Oréal and IBM represents a transformative step in cosmetic formulation, leveraging the power of AI to drive innovation, sustainability, and inclusivity. For formulators, this collaboration opens up new possibilities for creating cutting-edge beauty products that meet the evolving needs of consumers while contributing to a more sustainable future.

Author : Sheela Iyer
sheela@cosmetech.co.in
Sheela Iyer is an observer of the Indian Cosmetics & personal care industry and the editor of ‘Cosmetech’. She regularly video interviews industry experts on Cosmetech TV and has her fortnightly podcast ‘Cosmetics Today’
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