AI Adoption Transforms Product Innovation at Leading Consumer Goods Firms
The Impact of AI on Product Development in Consumer Goods
By Alexander Marrow
L'Oreal's AI-Driven Skincare and Haircare Innovations
VIENNA, July 6 (Reuters) - French cosmetics company L'Oreal has used AI to identify molecules in its skincare products that can be repurposed for use in shampoo and can now create products four times faster than before, a senior executive told Reuters.
Consumer companies, including Nescafe owner Nestle, Sensodyne toothpaste maker Haleon and chocolate maker Mondelez, are using AI in product innovation, helping them in some cases test ingredients faster, generate recipe ideas and address supply chain vulnerabilities, executives said.
Responding to Market Pressures
The push to integrate AI into product development comes as consumer goods companies face pressure to innovate faster and cut costs amid shifting consumer tastes.
L'Oreal's AI Journey
L'Oreal, which started using AI in its labs four years ago, has identified new molecules for beauty products by predicting the effect they will have on skin and hair, said Fabrice Megarbane, president of its consumer products unit.
L'Oreal's recent innovation was repurposing molecules used in skincare products for a shampoo that uses collagen to add lift and fullness to hair, Megarbane said.
Accelerating Product Creation
"You can really go much faster by imagining ... new associations of molecules and new benefits of molecules," Megarbane said at the Consumer Goods Forum's Global Summit in Vienna in late June.
L'Oreal CEO Nicolas Hieronimus launched a "beauty stimulus plan" last year to spur innovation after L'Oreal posted its slowest group sales growth in years.
AI Compressing Product Development at Mondelez
AI COMPRESSING PRODUCT DEVELOPMENT
Human product innovation augmented by AI is a "game-changer" at chocolate maker Mondelez, Chief Information and Digital Officer Filippo Catalano told Reuters.
Recipe Optimization and Supply Chain Resilience
The technology has helped the Cadbury and Toblerone owner speed up processes and reimagine recipes. The firm said 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 the possibility for reduced dependency on single sourcing in supply chains and the ability to adapt formulas to respond to changing consumer tastes.
Success Stories in AI-Driven Product Development
Mondelez's AI tool is reducing the number of samples typically generated through innovation, he said. It helped develop its Gluten Free Golden Oreo cookies and a refreshed recipe for Chips Ahoy cookies, the firm said. In the biscuit category, 60% of recipes produced using its AI tool performed better in areas such as nutrition, sustainability and cost.
"(AI capabilities are) accelerating things you could do already, but compressing the time from months to weeks or years to months," Catalano said.
Reporting and Editing Credits
(Reporting by Alexander Marrow; Editing by Adam Jourdan and Rod Nickel)
