Stripped bare - L’Oréal and Estée Lauder on the transformative makeover AI is giving the $777 bn beauty market

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Beauty is big business - $777.65 billion worth of big on a global scale last year alone, and projected to grow to over a trillion dollars by 2034 according to some estimates.

It’s also a ferociously competitive market. Previously diginomica has tracked the digital transformation of a number of major players in this space. In 2026, that digital focus centers inevitably on AI and the impact it is having on the way firms operate.

L’Oréal, established in 1909 is partnering with NVIDIA, while 80-year-old Estée Lauder, is collaborating with Microsoft and OpenAI. Both expect to see significant makeovers of their opportunities for growth as a result of operating efficiencies, as well as a boost to their overall Customer Experience.

For L’Oréal, CEO Nicolas Hieronimus, an articulate advocate for AI for many years, argues:

AI is truly going to power up beauty, to augment beauty in many ways. We embarked...

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