Dive Brief:
- Coty has entered into a strategic partnership with OpenAI to integrate its ChatGPT Enterprise software across its business, the beauty conglomerate announced Monday.
- As part of the agreement, Coty employees can access OpenAI to support their daily work activities. AI tech serves as “an efficiency enhancer” for creativity and strategic thinking, with human expertise remaining central to the company’s approach, according to a press release.
- The company has already begun implementing AI and offers an international upskilling program to help its staff use the technology in their day-to-day tasks, according to the announcement.
Dive Insight:
Through its deal with OpenAI, Coty aims to guide its employees to use AI responsibly and effectively. The company touted the partnership as a sign of its “commitment to responsible, intentional innovation, introducing new technologies.”
“This collaboration enables Coty teams to securely use OpenAI’s leading, enterprise-grade AI capabilities in line with Coty’s expectations for privacy, quality, and performance,” Jerome Auvinet, Coty chief information, digital innovation and business services officer, said in a statement. “It helps our teams work more efficiently and focus on higher-value contributions.”
Besides Coty, OpenAI has developed relationships with other brands and retailers.
Mattel teamed up with OpenAI last June to create AI-powered products and experiences tailored to its brands.
Last September, the company partnered with Walmart to create a custom AI certification program for its U.S. frontline and office-based staff. The following month, the two announced plans to let shoppers make Walmart purchases via ChatGPT using its Instant Checkout feature.
Target also worked with OpenAI last fall to release a beta version of its app within ChatGPT, allowing shoppers to buy products and choose from drive up, pick-up or shipping fulfillment options.
Along with collaborating with various brands and retailers, OpenAI is prepping ChatGPT to become a research hub for shoppers. In November, the company debuted a new shopping research feature in ChatGPT to help shoppers find items based on their search prompt.
Coty’s latest AI push follows a number of changes at the company, including eliminating around 700 positions last spring as part of its strategic transformation.
Last March, Coty sold its 20% stake in Skkn by Kim, the beauty brand founded by Kim Kardashian, to Skims for an undisclosed sum. At the end of last year, the company also sold its remaining 25%-plus interest in hair care brand Wella for $750 million to investment firm KKR.
Markus Strobel, a former Procter & Gamble exec, also joined Coty as interim CEO and executive chair in January. He replaced Sue Nabi, who served as its chief executive for about five years.
In Coty’s latest earnings report, the company reported a 6% drop in net revenue to $1.6 billion. The company’s net income dropped 18% to $67.9 million, and its operating income plunged 22.2% to $185 million.
