Coty Expands Generative AI Ecosystem
Consumer goods company Coty is expanding its AI ecosystem with new partnerships, including one with OpenAI, to enhance its creative and asset optimization capabilities. The company is rolling out advanced generative tools for campaign testing and automated asset versioning. This builds on existing collaborations with Microsoft and ServiceNow to scale targeted campaigns more effectively.
- The partnership with OpenAI provides select Coty teams with access to ChatGPT Enterprise, which is designed with enterprise-grade security and privacy to support daily tasks and collaboration. This initiative is part of a phased rollout that can be scaled as the company's needs evolve. - Coty is implementing a global upskilling program that includes live training, hands-on workshops, and leadership engagement to ensure employees can use AI responsibly and effectively. The company has emphasized that human expertise will remain central to its operations, with AI serving to enhance efficiency. - This move is part of Coty's broader "Digital-First Omnichannel" strategy, which has included a long-term partnership with Perfect Corp since 2021 to integrate augmented reality and AI for virtual makeup try-ons and online skin diagnostics. - Coty's Chief Information, Digital Innovation & Business Services Officer, Jerome Auvinet, stated that the collaboration allows teams to work more efficiently and concentrate on higher-value contributions. - Competitors in the beauty industry are also heavily investing in AI. For instance, Jo Malone London launched an AI-powered fragrance advisor, while L'Oréal's ModiFace and SkinConsult AI offer virtual try-ons and skin diagnostics, leading to a 3x higher conversion rate. - For creative production, generative AI tools are being used to automate the creation of ad variations for different platforms, with Google's Performance Max campaigns requiring up to 20 images and 5 videos. Studies show that over 84% of high-performing marketing teams now use generative AI for creative development. - Brands are leveraging AI for hyper-personalization at scale. Nutella, for example, created seven million unique jar designs using AI, and Coca-Cola's "Share a Coke" campaign used AI to analyze data for personalizing bottles. - From a leadership perspective, the integration of AI is focused on driving efficiency and value creation. Coty's "All-in to Win" program, which has already generated over $700M in savings, is now entering a new phase focused on simplifying the operating model and reducing complexity, partly through AI-driven systems for demand planning.
