Key facts
- L'Oreal is using AI to repurpose skincare molecules for shampoos, speeding up product development.
- Nestle, Haleon, and Mondelez are also utilizing AI in their product innovation processes.
- AI helps companies test ingredients faster, generate recipe ideas, and address supply chain issues.
- Mondelez has used AI to develop new cookie recipes, including Gluten Free Golden Oreo.
- AI is compressing product development timelines from years to months or months to weeks.
Consumer goods companies are increasingly turning to artificial intelligence to accelerate product innovation and reduce costs. L'Oreal, a French cosmetics giant, is leveraging AI to identify and repurpose molecules, significantly speeding up the development of new products. The company can now create products four times faster than before, according to a senior executive.
Other major players in the consumer goods sector, including Nestle, Haleon (maker of Sensodyne toothpaste), and Mondelez (owner of Cadbury and Toblerone), are also integrating AI into their innovation pipelines. This technology assists in various stages, from testing ingredients and generating novel recipe ideas to enhancing supply chain resilience and adapting to evolving consumer preferences.
For L'Oreal, AI has been instrumental in predicting the effects of specific molecules on skin and hair, leading to innovations such as a shampoo formulated with collagen for added lift and fullness. Fabrice Megarbane, president of L'Oreal's consumer products unit, highlighted AI's ability to facilitate faster discovery of new molecular associations and benefits.
Mondelez views AI as a "game-changer" in product development. The company's Chief Information and Digital Officer, Filippo Catalano, explained that AI tools can generate creative recipes and optimize formulations, potentially reducing reliance on single-source ingredients and allowing for quicker adaptation to market demands. This has led to the development of products like Gluten Free Golden Oreo cookies and an updated Chips Ahoy recipe, with a significant percentage of AI-generated recipes showing improvements in nutrition, sustainability, and cost-effectiveness. Catalano noted that AI is compressing development timelines, turning years into months or months into weeks.