LāOreal, Mondelez and Nestle deploy AI to accelerate product development and supply chain efficiency
Major consumer goods firms including LāOreal, Mondelez and Nestle are integrating artificial intelligence to speed up product innovation and enhance supply chain resilience.
1. AI in Cosmetics and Food Development
Major consumer goods companies are increasingly utilizing artificial intelligence to accelerate product development and streamline research processes. LāOreal has integrated AI into its laboratories for four years, using predictive science to simulate how molecules interact with skin and hair. This approach has reportedly made product formulation four times faster, allowing the company to repurpose existing ingredients for new applications, such as a collagen-based shampoo. Similarly, Mondelez is employing AI to assist in recipe development for brands like Oreo and Chips Ahoy. The company uses AI to generate and test recipe variations, which helps reduce the number of physical samples required during the innovation phase.
2. Supply Chain and Operational Efficiency
Beyond formulation, companies are leveraging AI to address supply chain challenges and improve operational flexibility. Mondelez utilizes its AI tools to identify alternative ingredients, helping the company mitigate risks associated with price fluctuations or availability issues. This strategy supports the company's broader goals regarding nutrition, cost, and sustainability. Other firms are also expanding their use of the technology; for instance, Nestle and IBM Research collaborated on a generative AI tool designed to discover high-barrier packaging materials that protect products while considering factors like recyclability and cost. Additionally, Haleon has entered a five-year partnership with Microsoft to incorporate AI into areas such as supply chain operations, scientific research, and commercial execution.
3. Reformulation and Industry Standards
AI is also playing a role in the industry-wide effort to reformulate products to meet new health and regulatory standards. Nestle has committed to removing artificial food colorings from its global product portfolio by the end of 2026. This process involves using AI to screen for natural alternatives and test their performance and shelf life during production. These initiatives align with broader industry trends, as companies work to adapt to changing consumer preferences and regulatory requirements, such as the U.S.