WEBVTT

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I think that the companies

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who will be the first and
the best at understanding AI

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and leveraging AI at the
service of their products

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are undoubtedly going
to be the ones who win.

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Welcome, Othman.

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Thank you very much.

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Thanks for inviting me.

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So CreAItech was the centerpiece

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of VivaTech's show from L'Oréal.

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As CDMO of Europe,

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how do you ensure that the
content that you produce

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remains locally relevant,

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especially in a region
as diverse as Europe?

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CreAItech indeed is a
game-changer for our teams.

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It is a proprietary platform
that allows our marketers

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and all L'Oréal organization
to generate content,

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image and video, for internal
and now external use.

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Yet on top of the AI-generated content,

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we are also working a lot
locally with our teams

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so that we unleash creativity,

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that we work with local ambassadors,

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that we work on disruptive campaigns

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working also with them on
what we call beautytainment,

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which is sponsorship of
some key local events.

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So that we keep this balance between

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AI-generated content on one hand,

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and sometimes content at scale

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that is sometimes industrialized,

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but at the same time,
unleashing creativity,

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unleashing local relevancy,

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and making sure that our brands

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are speaking to the local consumer

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and cutting through
the noise all the time.

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So LLMs are now at the front
door of discoverability.

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What does this shift mean concretely

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for you and for your brands?

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First, it's very exciting.

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The way we see it, you know,

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we're all about how men and
women engage with beauty.

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We see that as an additional brick

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of how they engage with beauty,

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they understand beauty,
they discover beauty.

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We see that as an opportunity

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for their beauty routine and universe

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to expand and become richer and richer.

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Originally, you had
TV, outdoor, magazines,

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then you had, you know, search,

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and then you had social media.

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Now you have this brick that comes on top.

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So for us, we see that as an opportunity.

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We see that mostly as an opportunity

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to provide an even more
personalized recommendation

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for men and women who are looking for

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the ideal beauty product for
their skin, hair, or face.

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Now, obviously, we have to
adapt to this new reality,

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and the question is, how do we make sure

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that our presence on those LLMs

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is as good as it is on
the other touchpoints?

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So what are the drivers for us

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to appear strongly on those LLMs?

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How do we measure our
presence on those LLMs?

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But you know,

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I think that talking
about beauty conversation,

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we have a great example.

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We were quite early on this party

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as we worked together on the launch

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and the development of Beauty Genius.

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That is our virtual beauty advisor

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available seven days a
week, 24 hours a day.

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It was launched in the US,

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and that is providing a
personalized recommendation

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on anything you want to know

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about beauty and L'Oréal Paris products.

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So it was really important

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that we could launch Beauty Genius,

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because we're the first to really learn

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about this reality of beauty conversation

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and to be able to expand that learning

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and understanding to all our brands.

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And that's a very good transition,

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because L'Oréal has been
investing in AI for years

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with ModiFace, CreAItech, Beauty Genius,

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now the partnership with OpenAI.

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At what point do you
think technology stack

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becomes a genuine moat
against competitors,

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or is AI by nature something

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that levels the playing
field for everyone?

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L'Oréal has been, you know,

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working and integrating AI very early.

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We purchased ModiFace in 2017.

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As you say, we were the
first company to have AI JBP,

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so joint business plans with
some of the biggest platforms.

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Very early, a big part of our,

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for example, search media was AI powered.

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So AI is not new for us.

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I think that the fact that we've been

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working and investing on AI,

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building strong expert teams on AI,

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starting early on beauty conversations,

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is definitely a competitive edge.

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I think that the companies
who will be the first

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and the best at understanding
AI and leveraging AI

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at the service of their products

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are undoubtedly going
to be the ones who win.

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And I think you have experts,

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you have tools, you have solutions.

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But also I believe we have to talk about

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people and organization.

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I think that the companies
that will be able to train

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and upskill their organization as a whole

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are also going to be the ones who win.

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It's great if you have the infrastructure,

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and the solutions, and the tools,

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but if your organization
is not adopting AI,

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understanding AI, embracing AI

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in a way that makes their life easier,

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then probably, the two are not
going to work well together.

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So I think this is what L'Oréal is doing.

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And for sure, I believe that the companies

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who will win on AI will also win

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in the way they engage
with their consumers

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and in the way they gain market share.

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Perfect.

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Thank you so much for these insights.

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Thank you very much, Leila.

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(bright music)