What: Estée Lauder partners with Microsoft to launch ConsumerIQ, an AI-powered platform that transforms vast amounts of company data into actionable insights across its 25-brand global portfolio.

Why it is important: This strategic AI implementation addresses the retail industry's 4.5% loss in gross sales due to inefficiencies, while positioning Estée Lauder to capitalise on the growing consumer demand for personalised experiences that has created a $570 billion market opportunity.

The Estée Lauder Companies has embarked on a transformative partnership with Microsoft to develop ConsumerIQ, an advanced AI-driven platform that revolutionises how the company analyses and utilises consumer and market data. This innovative tool, powered by Microsoft Copilot Studio and Azure OpenAI Service, integrates diverse data sources into a centralised platform, enabling swift access to crucial information through natural language processing and generative AI. The system's ability to reduce analysis time from weeks to minutes represents a significant advancement in operational efficiency, facilitating faster innovation and more agile marketing strategies. Microsoft's recognition of ELC in its inaugural Agents of Change list underscores the initiative's significance in driving technological advancement. With operations spanning 25 brands across 150 countries, ELC's implementation of ConsumerIQ not only streamlines data analysis but also positions the company to enhance its marketing strategies and product offerings in response to evolving consumer trends, setting a new precedent for AI adoption in the retail sector.

IADS Notes: Estée Lauder's launch of ConsumerIQ aligns with significant industry developments observed throughout 2024-2025. As reported in March 2025, 87% of retailers implementing AI witnessed revenue increases of 6% or more, while McKinsey's February 2025 findings revealed that 71% of consumers now expect personalised interactions. The urgency of this initiative is underscored by Coresight Research's November 2024 report showing retailers lose 4.5% of gross sales due to inefficiencies. The scale of this implementation mirrors Walmart's successful processing of 850 million data points, demonstrating how large-scale AI adoption can transform retail operations and customer experience.

Estée Lauder leverages custom AI to streamline retail data management