MIRROR, MIRROR ON THE WALL, AI KNOWS IT ALL
(LRLYC), (NVDA), (EL), (SSDOY)
Something had been lighting up Las Vegas brighter than its neon signs – Artificial Intelligence (AI).
Forget the glitz of slot machines; the real buzz in Sin City in the past weeks is all about AI. And when I say AI is getting big, I mean it's heading towards a colossal $190.61 billion by 2025.
An excellent example is Nvidia (NVDA). These guys are the wizards behind AI-focused graphics chips, and guess what? Their stock hit a record high at CES after they pulled the curtain back on their latest gizmos. This just shows how hot AI is getting in investor circles.
But it's not just tech gurus diving into the AI pool – even the makeup moguls are getting their feet wet.
Case in point: L’Oreal SA (LRLYC). They're the big shots in the beauty game, and they rocked the CES in January with their CEO, Nicolas Hieronimus, showing off their AI and machine learning tricks.
They've got this slick thing called the “Meta Profiler,” developed alongside Giorgio Armani SA. This baby can boost sales conversions by a jaw-dropping 73%. It's like a personal beauty assistant, trained on a massive 100,000 skin samples. Analysts are betting this could net L'Oréal a cool $1.08 billion by 2025. Talk about cashing in on AI.
L’Oreal isn’t just dabbling in AI for fun; they're serious players. They chalked up a growth rate of 7.8% last year, thanks in part to their AI moves.
Actually, the whole beauty tech scene is on fire, with venture capital funding for AI startups in this space jumping by 15% from year to year.
Now, let's chat about what you and I, the average Joes, are looking for. A recent study showed that 63% of consumers are all about AI-based personalized recommendations. That’s a big thumbs up for tech like L’Oréal’s Meta Profiler and Beauty Genius.
Speaking of Beauty Genius, this isn’t just some run-of-the-mill chatbot. It's a treasure trove of data, trained on 6,000 images and 10,000 products. It's like your personal beauty shopper, matching you with the perfect L'Oréal products and even hooking you up with TikTok tutorials featuring your favorite celebrity.
As expected, it's not just L'Oréal in this beauty tech race. The competition is heating up, with patent filings in this sector jumping by 24% in the last couple of years.
Estée Lauder (EL) and Shiseido (SSDOY) are neck and neck with L'Oréal, splurging big bucks to grab the AI beauty crown.
AI isn’t just about looking good; it’s about doing good too. L'Oréal’s also rolled out this AI-based Water Saver tech that's saved over 42 million liters of water globally. Now, that’s what I call beauty with a conscience.
From a dollars-and-cents perspective, AI is set to boost revenues by 10% to 20% for retail and consumer goods companies. That's serious money we're talking about.
Fast forward to the future, and AI in beauty looks as shiny as a new lipstick. We're not just talking about slapping on makeup; it’s all about smart, personalized solutions. And the investment world is waking up to this.
So, what’s the big picture? We're looking at the global AI market zooming to an eye-popping $2.57 trillion by 2032. The beauty industry is gearing up to cash in big time. We're talking about a market ballooning to a staggering $38.27 billion by 2027, zooming along with a CAGR of 19.22%.
Essentially, L'Oréal’s journey with AI is a story of how tech meets personalization. For investors surfing the AI wave, this is one ride you don’t want to miss. As CES closes its curtains, it's crystal clear: L'Oréal isn't just making faces prettier; they're reshaping the beauty industry's future.
