Estee Lauder expands Microsoft AI partnership
Estee Lauder is building on an existing artificial intelligence collaboration with Microsoft to connect its data across all brands, regions and channels.
The Estée Lauder Companies Inc. is harnessing Microsoft Corp. AI and cloud technology to support adoption of AI-enabled capabilities across its enterprise and connect data and intelligent tools. The global cosmetics conglomerate launched a global strategic relationship with Microsoft in 2017 and in 2024 co-created an AI Innovation Lab with the tech giant.
[READ MORE: Estee Lauder develops generative AI with Microsoft]
Leveraging generative AI capabilities in Microsoft’s Azure OpenAI Service, the companies are working together to develop solutions for Estee Lauder’s more than 20 beauty brands, including an internal-facing generative AI chatbot and product development tools.
This expanded partnership is part of Estee Lauder’s One Operating Ecosystem, which integrates shared platforms, connected data, and third-party partners to help enable execution across the enterprise. It also supports the company’s Beauty Reimagined strategy to bring together technology, data, and AI to strengthen consumer-centricity, accelerate innovation, improve productivity and create sustainable value.
“We are building the future of consumer-centricity — in our products, experiences, commerce, and more,” said Brian Franz, chief technology and transformation officer, The Estée Lauder Companies. "Our partnership with Microsoft, in addition to the other strategic partners in our One Operating Ecosystem, is powering our teams with the capabilities to ultimately deliver more relevant, personalized experiences that meet consumers’ evolving needs. These enhanced capabilities will help us drive sustainable growth, improve productivity, and support margin expansion, creating capacity to reinvest into our enterprise to serve our consumers.”
The cosmetics company will also harness Microsoft technology to advance its Unified Data Platform, which serves a foundation for connecting its data across brands, regions, channels, and functions to reduce duplication, enable reusable data products, and create more consistent access to data-driven insights.
Specific areas Estee Lauder will apply advanced Microsoft AI solutions include:
Decision intelligence
To advance decision intelligence, Estee Lauder is embedding AI in workflows and building a shared enterprise foundation. By connecting insights to end-to-end workflows, the company seeks to enable marketing, commercial, value chain, and research and innovation personnel to make faster, more coordinated decisions in response to changing consumer and market needs.
Specifically, the company is evolving how products move from idea to launch in the value chain by developing a connected, AI-equipped workflow across design, validation, and manufacturing to help enable faster decisions.
Productivity & automation
The company is equipping employees with secure AI tools including the Microsoft Copilot agentic AI assistant and automating repetitive, manual work. Estée Lauder has expanded Copilot across its global office-based workforce to more than 14,000 employees. Employees are experimenting with productivity agents and embedding AI into role-specific workflows.
Estee Lauder is also focusing on new product innovation in an effort to create differentiated products tailored to consumer needs.
“The future of the beauty industry will be shaped by organizations like the Estée Lauder Companies that connect data, people, and AI responsibly,” said Deb Cupp, executive VP and chief revenue officer, Microsoft. “Our expanded collaboration will help turn insights into action at scale—from empowering employees to modernizing product development and delivering more meaningful consumer experiences.”
The Estee Lauder Companies Inc. sells products in approximately 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Lab Series, Origins, M·A·C, La Mer, Bobbi Brown Cosmetics, Aveda, Jo Malone London, Bumble and bumble, Darphin Paris, Tom Ford, Smashbox, Aerin Beauty, Le Labo, Editions de Parfums Frédéric Malle, Glamglow and Kilian Paris.
