L'Oréal Says Nearly 20% of Marketing Spend Is Now AI-Led

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L'Oréal Group's chief digital and marketing officer, Asmita Dubey, says almost 20% of the company's marketing investments are now AI-led, with ROI measurement already relying heavily on machine learning and AI. Dubey, who has led the beauty giant's digital and marketing organization through the shifts from e-commerce to search, TikTok and social listening, describes an AI strategy built on three pillars: helping employees work with AI, embedding AI across business functions including marketing, research and operations, and understanding how AI is changing the consumer journey. She says the consumer journey is expanding rather than collapsing, with searches that once took a few minutes now stretching to 11 minutes as consumers chat with AI, and L'Oréal has been testing advertising in Google's AI Overviews while working with platforms including OpenAI, Amazon and Alibaba. The company has folded its beauty research into an internal intelligence platform that employees can interrogate conversationally, and it is pursuing generative-engine optimization around authority, scientific content, brand content and product information. Dubey says the plumbing matters as much as the creativity, pointing to standardization of advertising accounts and product data across platforms such as Google and Meta, and notes L'Oréal recently had its 20 senior-most executives create an ad with AI from start to finish.

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L'Oréal says nearly 20% of marketing spend is AI-led and it is embedding AI across marketing, research and operations, including testing ads in Google's AI Overviews.

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