How L'Oreal, Mondelez and Nestle Are Using AI for Faster Product Development

L'Oreal is leveraging artificial intelligence to significantly reduce product development timelines and discover innovative applications for ingredients already within its extensive portfolio. This strategic implementation marks a transformative shift in how the beauty industry approaches formulation and innovation.

🔬 AI Integration in L'Oreal's Laboratories

The French cosmetics giant has been applying AI technology in its research facilities for the past four years. Fabrice Megarbane, president of L'Oreal's consumer products division, explained to Reuters that the technology enables the company to predict how molecules will interact with skin and hair before they are incorporated into new formulations.

L'Oreal's predictive formulation capabilities can simulate ingredient performance, allowing scientists to test multiple variables digitally before conducting physical laboratory testing.

The company has positioned this work as a core component of its use of predictive science in beauty product development. One notable recent example involved repurposing molecules previously used in skincare products for a collagen-based shampoo designed to add lift and fullness to hair.

⚡ Accelerated Product Development

According to Megarbane, AI empowers product teams to test new molecular combinations and assess their potential benefits with unprecedented speed. L'Oreal reports that AI has made product formulation four times faster compared to traditional methods.

The technology serves as a strategic tool to narrow formulation options before laboratory testing begins. This AI implementation is part of a broader innovation initiative following the group's slowest sales growth in recent years.

Chief Executive Nicolas Hieronimus introduced a "beauty stimulus plan" last year to support accelerated product development. The company is focused on speeding up product launches as consumer preferences continue to evolve rapidly across all beauty categories.

🍫 AI Transformation in Food Industry

L'Oreal is not alone in this technological revolution. Other major consumer goods companies, including Nestlé, Haleon, and Mondelez, are also deploying AI in product development. Their applications span ingredient testing, recipe generation, and supply chain optimization.

📊 Mondelez's Recipe Innovation

At Mondelez, AI supports recipe development across iconic brands including Cadbury, Toblerone, Oreo, and Chips Ahoy. Chief Information and Digital Officer Filippo Catalano explained that the technology enables the company to create and test recipe options more efficiently than ever before.

The company's AI tool can generate recipe ideas, including unconventional combinations, before human experts conduct their reviews. Catalano noted this approach can significantly reduce the number of physical samples needed during product development.

The AI tool supported the development of Gluten Free Golden Oreo cookies and a refreshed Chips Ahoy recipe. Beyond recipe optimization, Catalano said AI helps Mondelez reduce dependence on single sourcing by identifying alternative recipe options when ingredients vary by availability, price, or other requirements.

🌿 Reformulation Challenges and AI Solutions

Nestlé has committed to removing artificial food colourings from all products worldwide by the end of 2026, having already eliminated artificial colourings from its US portfolio. Chief Technology Officer Stefan Palzer said this work requires screening natural alternatives, testing them during production, and assessing shelf life.

The US Food and Drug Administration has announced it is collaborating with manufacturers, retailers, and trade groups to remove six remaining certified colour additives frequently used in the food supply by the end of 2027. The agency has also been monitoring industry commitments to eliminate petroleum-based food dyes.

🤝 Strategic AI Partnerships

Barry Callebaut & NotCo

Barry Callebaut has partnered with NotCo to utilize AI in chocolate recipe development, including exploration of ingredient alternatives. The companies describe the technology as a method to identify and simulate combinations of plant-based ingredients for chocolate products.

Nestlé & IBM Research

Nestlé and IBM Research announced in 2025 that they developed a generative AI tool to identify high-barrier packaging materials. The tool can assess materials designed to protect products from moisture, oxygen, and temperature changes, while simultaneously factoring in cost, recyclability, and functionality.

The packaging project employs chemical language modeling and IBM Research's regression transformer to link molecular structures with physical-chemical properties. Nestlé said the tool was developed specifically to support materials discovery for packaging applications.

Haleon & Microsoft

Haleon announced a five-year collaboration with Microsoft in June 2026 covering consumer insights, product innovation, supply chain operations, scientific research, clinical content development, forecasting, and commercial execution. The consumer health company was among the firms recognized for using AI in product innovation.

👥 The Human-AI Collaboration Model

Catalano emphasized that AI is reducing development timelines by compressing work that previously took months or years. However, he was clear that the technology is not replacing human product teams, but rather is being deployed to accelerate existing research, testing, and formulation processes.

Mondelez maintains that human experts assess all AI-generated recipe ideas before products advance further through the development pipeline.

This collaborative approach ensures that innovation is enhanced by AI capabilities while maintaining human expertise and judgment as the final decision-making authority in product development.

(Image by AdoreBeautyNZ)