Artificial Intelligence is rapidly changing how consumer goods companies develop new products, helping them innovate faster, reduce costs and respond more quickly to changing customer preferences. Several global brands are now using AI to improve product research, recipe development and supply chain planning.
French cosmetics company L’Oreal has been using AI in its research laboratories for the past 4 years. According to the company’s Consumer Products President, Fabrice Megarbane, AI has helped identify molecules originally developed for skincare that can now be used in shampoos. One recent innovation uses collagen-based molecules to improve hair lift and fullness. He said AI has enabled the company to create new products 4 times faster by discovering new combinations and benefits of existing ingredients.
The company introduced a “beauty stimulus plan” last year after recording its slowest group sales growth in recent years, with innovation becoming a major focus.
Other consumer goods companies are also expanding the use of AI. Businesses behind brands such as Nescafe, Sensodyne, Cadbury, Toblerone and Oreo are using the technology to test ingredients, generate recipe ideas and strengthen supply chain resilience.
At Mondelez, AI is helping product teams develop recipes faster while reducing the number of physical samples required during testing. The technology contributed to the development of Gluten Free Golden Oreo cookies and an updated recipe for Chips Ahoy cookies. The company also said 60% of biscuit recipes created using its AI tool performed better in areas such as nutrition, sustainability and cost efficiency.
Filippo Catalano, Chief Information and Digital Officer at Mondelez, said AI is transforming product innovation by significantly reducing development timelines. He added, “(AI capabilities are) accelerating things you could do already, but compressing the time from months to weeks or years to months.”
As companies continue investing in AI, the technology is becoming a key tool for accelerating innovation while improving product quality, operational efficiency and business competitiveness.
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