As AI reshapes the consumer journey, L’Oréal is rethinking its marketing engine

Asmita Dubey, L'Oréal Group's chief digital and marketing officer, began her advertising career in 1997 creating campaigns for various products. As computers became commonplace, she shifted her focus to planning and media, learning computer-based skills like Excel and data analysis. Dubey's career has evolved alongside technology, from e-commerce and search to AI. Now, as a leader in the L'Oréal Group, she must navigate the impact of AI on the consumer journey.

AI is reshaping marketing in several ways. It influences how companies generate insights, develop content, target audiences, measure returns, and the way consumers decide what to buy. Dubey emphasizes that understanding the systems connecting consumers and brands is crucial. At L'Oréal, this means marketers are increasingly involved in data and IT decisions, and working closely with technology teams.

The company's AI strategy consists of three pillars: empowering employees to work with AI, embedding AI to streamline processes across marketing, research, and operations, and understanding how AI is changing the consumer journey. Dubey highlights that the consumer journey is expanding, not collapsing, due to AI's capabilities. For example, people now spend more time engaging with AI, leading to increased content requirements.

L'Oréal is experimenting with AI on various platforms, including Google's AI Overviews, OpenAI, Amazon, and Alibaba. The company is looking for ways to make its beauty products more discoverable through AI search. Dubey stresses that marketing is ultimately about the consumer, and AI's role is to make brands more relevant and credible in the AI-mediated journey.

To achieve this, L'Oréal is investing heavily in AI, with almost 20% of its marketing budget devoted to AI-led initiatives. Machine learning and AI are already integral to ROI measurement. However, Dubey stresses that understanding the underlying infrastructure of marketing is essential. She likens this to ensuring the "pipes and plumbing" are in place, such as standardizing advertising accounts, product data, and understanding product information.

Dubey argues that while technology increasingly enters marketing, getting the fundamentals right remains crucial. The core of marketing—fulfilling consumer needs and creating authentic, consumer-centric engagement—remains unchanged. To keep up with AI's advancements, L'Oréal encourages experimentation, learning about the technology firsthand, and understanding how it can be best applied to shape consumer journeys.