WEBVTT

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SAM RANSBOTHAM: How is AI
helping one beauty company spot

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key trends?

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Find out on today's episode.

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Stéphane Lannuzel: I'm Stéphane
Lannuzel from L'Oréal, and you

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are listening to
Me, Myself, and AI.

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SAM RANSBOTHAM: Welcome
to Me, Myself, and AI,

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a podcast on artificial
intelligence in business.

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Each episode, we introduce you
to someone innovating with AI.

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I'm Sam Ransbotham, professor
of analytics at Boston College.

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I'm also the AI and business
strategy guest editor

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at MIT Sloan Management Review.

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SHERVIN KHODABANDEH: And
I'm Shervin Khodabandeh,

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senior partner with BCG, and
I colead BCG's AI practice

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in North America.

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Together, MIT SMR and BCG have
been researching and publishing

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on AI for six years,
interviewing hundreds

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of practitioners and
surveying thousands

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of companies on what it takes
to build and to deploy and scale

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AI capabilities and
really transform

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the way organizations operate.

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SAM RANSBOTHAM: Today, Shervin
and I are talking with Stéphane

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Lannuzel, Beauty Tech
program director at L'Oréal.

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Stéphane, thanks for joining us.

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Welcome.

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SHERVIN KHODABANDEH:
Hi, Stéphane.

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Stéphane Lannuzel: Hello.

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I'm really happy to be
talking with you today.

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SAM RANSBOTHAM:
Let's get started.

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Stéphane, you're at L'Oréal.

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Can you tell us about
your current role?

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What does a Beauty Tech
program director do?

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Stéphane Lannuzel: I'm in
charge of the beauty-tech

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transformation, which is a
global transformation in all

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functions and in
all geographies.

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And that adventure in beauty
tech for me started in 2019

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with the vision of our
CEO -- at that time,

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that was Jean-Paul Agon --
that was really visionary

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in the fact that tech will
disrupt the beauty industry.

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And he really listened and
talked with all the CEOs

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of the big tech companies,
asking them the question

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of what tech will do to beauty
-- how tech will impact beauty.

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And that's how we
started on that journey,

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saying that we want to be the
champion, the leader of beauty

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tech, to be the No.

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1, because at L'Oréal, we
are the leader of the beauty

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industry, so we decided that
we wanted to be the leader

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of beauty tech.

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And I started with that mission,
being the Beauty Tech program

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director, with only these
two words: beauty and tech.

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And basically, the simple
motto of Beauty Tech

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is to invent the beauty of
the future while transforming

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into a company of the future.

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So what I'm doing every
day is inventing the beauty

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of the future and transforming
L'Oréal into a company

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of the future.

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SAM RANSBOTHAM:
What did you learn?

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How will technology
affect beauty?

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What's going to
be the big change?

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Stéphane Lannuzel: There
are two big impacts.

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There is the development of
services for our consumers,

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but there is also, "How
can we leverage technology

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to make the life of
our employees easier

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and make them faster and more
creative and more nimble?"

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Let's start first
with consumers.

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L'Oréal has been around
for more than 110 years,

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and we produce 7 billion
physical cosmetic products

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every year, but we are more
and more into services,

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and basically tech is playing a
huge part in developing beauty

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services.

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We have been working a
lot on helping consumers,

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through services and
through technology,

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to be able to find the
right product for them.

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[For] example, we have
developed some solution

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using AI and computer
vision and augmented

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reality to be able to do
virtual try-ons of makeup.

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Another example is
a skin diagnostic

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to make some
recommendation in terms

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of what are your top concerns
and what are the products

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that you should apply
in your daily routine.

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So this is how technology is
really transforming beauty,

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because we want to develop a
beauty that is more and more

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inclusive -- a beauty that is
more and more personalized.

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SAM RANSBOTHAM: You've
got a varied background

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in banking and consulting and
luxury and consumer goods.

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Can you tell us
a little bit more

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about what got you
to your current role

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and, in particular,
what got you interested

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in artificial intelligence and
applying these technologies

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in your current role?

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Stéphane Lannuzel: I've been
in the beauty industry for 15

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years now, so after consulting,
I worked for many luxury

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or cosmetic goods companies.

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I decided to really be
part of that industry,

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and I joined the
cosmetic industry,

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first in Shiseido
and then in L'Oréal.

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Technology was
not that prominent

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when I graduated
a long time ago,

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but what I've done
throughout my career

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is really look at how we can
make the organization evolve

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to be able to cope
with new trends.

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And obviously, people play
a major part in that --

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the way you add new skills
in your organization,

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the way you structure
the organization.

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And more and more, technology
is also playing a key role.

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I've always been very curious
in looking at how technology

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was evolving and trying
to see in my industry,

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in the beauty industry, what
could be the impact: What can I

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leverage?

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I think that's why I'm
the head of Beauty Tech:

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because I'm really into being
curious about technology,

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being a strong believer
of transformation,

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and being a strong believer that
organizations and people can

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adapt and can be even better
if you give them the incentive

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and you upskill them in
the use of technologies.

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I'm a very optimistic
person, and I've always

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seen tech as a force
of good for the people,

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good for the planet,
and really very curious

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at embracing new technology.

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SHERVIN KHODABANDEH: You
mentioned upskilling.

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Do people at L'Oréal need to
know anything about artificial

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intelligence?

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Stéphane Lannuzel:
Yes, they need to know.

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And not only the data
scientists or the few people

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that are really a practitioner
of artificial intelligence,

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but everybody.

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And here we've created the
tech and data university

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for L'Oréal that is targeting
[our] 88,000 employees.

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Obviously, we have
different programs --

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some programs [that
are] more acculturation,

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and some programs that
are really hard-core.

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And we do get requests
from general management:

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"Tell me about
artificial intelligence

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and what I need to know."

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What I am saying is that
we don't need everybody

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at L'Oréal to know how to
code in Python or to select

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the right hyperparameters
of models.

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But what they need
to understand is

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what we can do with
artificial intelligence, what

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we can't do, what we can expect,
what we can't expect, in order

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to deal with these
solutions that are making

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some recommendations; [and
also] how we should use them,

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and what are the limitations.

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And I think every
manager needs to develop

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some knowledge on that.

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And I'll give you one example.

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We are developing some solutions
to help the people in the labs

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to do the formulation of all
our products -- more precisely,

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to help them to predict the
performance of the formula when

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you change one or
a few ingredients,

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so that they don't have to
formulate in the real world,

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make the test, and
get the results.

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They can do that digitally
using the algorithms.

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And the type of reaction that
you get when you start working

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on that -- there are
people that are saying,

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"I'm not going to help you
train or validate the models

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on a solution that will probably
impact my job in the future."

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And there are
people that are also

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saying, "This is not working.

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I found one case
where it's wrong.

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Even if it's right
in 99% of the cases,

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I'm not going to use it, because
I don't trust the system."

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And these obviously
are two extreme cases,

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but that's where the
middle management

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and the general management
have a strong role

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to play to help
the democratization

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and to help people have
the right interaction

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with these solutions
that are part

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of the artificial
intelligence that we develop.

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SAM RANSBOTHAM: In some of the
research that Shervin and I are

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currently working
on, this idea --

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and what you're describing
is how you would work with

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a coworker, not really how
you'd work with a technology --

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I think a theme that's
starting to emerge

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is that, just like
it's true that I've

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made a mistake or
two in my past (I

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know that's hard for
everyone to believe),

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but I'm glad that my
colleagues didn't immediately

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throw me out and say,
"Oh, you're useless.

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You're pointless.

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Why would I ever
work with you again?"

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And what you just said there was
that same sort of perspective

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that we have.

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We have an expectation
of a technology

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that we don't necessarily
have of people.

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It seems like people
are shifting more

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to think about a team
being composed of humans

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and of machines.

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Stéphane Lannuzel:
I fully agree.

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And I can tell you that in all
the different solutions that we

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have developed with AI in them,
I've always underestimated

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that aspect, but people really
still see that as a technology

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and not as a help to
achieve some task.

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And it takes a
lot of convincing,

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a lot of explanation.

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SHERVIN KHODABANDEH: Do you
have any examples of AI projects

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or products that are being
well received at L'Oréal?

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Stéphane Lannuzel: We are
developing a solution to detect

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beauty trends.

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It's called TrendSpotter.

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When you look at
what is happening

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in the academic
world, the research

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world, the
macro-influencer world

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we are reading the
different posts

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that they make on social
media, reading some papers,

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getting some ideas, and
seeing some trends emerging

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on ingredients and
on the whole thing.

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So those are the initial
seeds of a new trend

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that is emerging.

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And then you are looking
at all these trends

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that are then being
amplified by, let's say,

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the general population.

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So without revealing
all the secrets,

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it's listening in on these
different groups across

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different geographies -- in
Asia and the U.S., in Europe --

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that you see some
trends emerging.

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SAM RANSBOTHAM: Sign me up.

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I mean can I get access to it?

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I certainly need
all the help that I

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can get in that department.

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I like the idea there,
though, because obviously that

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can aggregate a
ton of information

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from lots of different
sources and let you pick up

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on things early,
because I'm guessing

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you face a time crunch,
too, because to go

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from an idea for a
product to a product

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isn't an instantaneous thing.

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And so the more
lead time you can

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get on when those
products are coming,

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the greater you're likely
to have them on the shelves

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when someone comes in.

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How does that process work?

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How do all those
pieces come together?

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Stéphane Lannuzel: When we were
working on that TrendSpotter

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solution, we were really not
starting from the technology

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and the idea but starting
from what you said, which is,

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what is the usage?

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What is the usage
of knowing a trend?

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And basically, what we realized
[is] there was one use --

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the one that you
mentioned -- which is, OK,

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how can we identify a trend
that will then translate

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into a product that will be
launched, as you rightly said,

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in 12 to 18 months?

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So basically, the
obvious need [is]

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where we need early on
to be able to detect

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some early-stage trends.

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But there was another
use that we discovered:

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You can also use a new trend
to be able to activate part

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of your existing portfolio,
meaning that you see a trend

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popping [up] -- and we do have
quite a wide range of products.

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So there are probably
products that

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are corresponding to that trend,
so then you will work on, OK,

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what can I do in terms
of making the activation

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to these products to be
able to answer the trend?

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So what you can see is, trends
have different horizons,

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and depending on
the horizon, then

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you can choose what you do.

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And that's what
you discover when

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you do proper user research to
understand their needs then.

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That was a new
expertise for us that we

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have acquired to make sure
that in all the solutions

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and services that we develop, UX
is really at the center of it.

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And there are some
skills that we have

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developed and internalized.

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Basically, we were
doing consumer research.

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We were doing some research on
the design of the packaging,

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but we are doing
exactly the same work.

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We have different specialists
on the digital services

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that we developed.

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And it's really key to
develop services that

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make an impact for consumers.

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SHERVIN KHODABANDEH:
That's fantastic.

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Sam, do you want to move
to the five questions?

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SAM RANSBOTHAM:
We have a segment

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where we ask you a series
of rapid-fire questions.

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So just say the first thing that
comes to the top of your mind.

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What's been your proudest
moment with AI so far?

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Stéphane Lannuzel: It's
always difficult to pick one.

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Very top of my mind,
I think, is when

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we've launched a
solution that is helping

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to do a quick analysis
of reviews and ratings

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and really to see how people can
now leverage what consumers are

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saying on our products,
and really leveraging

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that information at scale
throughout the world,

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throughout the category.

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So it's really for them, it
was mind-blowing to get access

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to that information
at that scale.

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SAM RANSBOTHAM: What worries you
about artificial intelligence?

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Stéphane Lannuzel:
Always the same subject,

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which is about bias -- bias that
we don't see that creeps in.

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SAM RANSBOTHAM: What's your
favorite activity that does not

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involve technology --
that has no technology?

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Stéphane Lannuzel:
On the personal side

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or the professional side?

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SAM RANSBOTHAM:
Personal side, yeah.

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Stéphane Lannuzel:
I would say running,

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because it is my
favorite activity.

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But it doesn't qualify as
not involving technology,

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because I use a watch, and
then I track my performance

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using technology.

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SAM RANSBOTHAM: I think
that's a common trend --

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that everyone finds that
whatever they're doing that

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involves no technology actually
does involve technology.

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Stéphane Lannuzel:
It may, and yes.

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SAM RANSBOTHAM: What
was the first career

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that you wanted as a child?

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What did you want to
be when you grew up?

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Stéphane Lannuzel: I
graduated as a civil engineer,

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and I wanted to build bridges,
so that's what I started to do

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in the very beginning
of my career.

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But I quickly moved
away from it and worked,

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as you mentioned
earlier, in the banking

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industry doing project finance
for infrastructure projects.

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SAM RANSBOTHAM:
What's your greatest

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wish for AI in the future?

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Stéphane Lannuzel: I think it's
really helping us to improve

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the world in which we live and
to help us solve the climate

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issue that we face.

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I'm a strong believer
that only technology will

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help us find solutions to
face the difficult situation

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in which we are.

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SAM RANSBOTHAM: Sounds good.

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Stéphane, thanks for
a great discussion.

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We really enjoyed
talking with you.

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Thanks.

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Join us next time,
when Shervin and I

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00:14:52.280 --> 00:14:54.660
speak with Teddy
Bekele, chief technology

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officer of Land O'Lakes.

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00:14:55.965 --> 00:14:58.592


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ALLISON RYDER:
Thanks for listening

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00:15:00.050 --> 00:15:01.560
to Me, Myself, and AI.

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00:15:01.560 --> 00:15:04.010
We believe, like you,
that the conversation

338
00:15:04.010 --> 00:15:06.230
about AI implementation
doesn't start and stop

339
00:15:06.230 --> 00:15:07.347
with this podcast.

340
00:15:07.347 --> 00:15:09.180
That's why we've created
a group on LinkedIn

341
00:15:09.180 --> 00:15:11.020
specifically for
listeners like you.

342
00:15:11.020 --> 00:15:13.760
It's called AI for Leaders,
and if you join us,

343
00:15:13.760 --> 00:15:15.790
you can chat with show
creators and hosts,

344
00:15:15.790 --> 00:15:18.500
ask your own questions,
share your insights,

345
00:15:18.500 --> 00:15:21.150
and gain access to
valuable resources about AI

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00:15:21.150 --> 00:15:23.990
implementation from
MIT SMR and BCG.

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00:15:23.990 --> 00:15:29.110
You can access it by visiting
https://mitsmr.com/AIforLeaders.

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00:15:29.110 --> 00:15:31.830
We'll put that link
in the show notes,

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00:15:31.830 --> 00:15:34.270
and we hope to see you there.

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00:15:34.270 --> 00:15:39.000