Coty taps OpenAI in AI strategy push

"Through a blend of live training, hands‑on workshops, and leadership engagement, Coty is fostering a culture where AI naturally supports how teams think, create, and deliver," the company said.
"Through a blend of live training, hands‑on workshops, and leadership engagement, Coty is fostering a culture where AI naturally supports how teams think, create, and deliver," the company said. (Getty Images)

The partnership, focused initially on targeted teams with potential for scaling, emphasizes responsible AI deployment and aligns with broader industry trends of using AI for consumer engagement and product development.

Coty Inc. has formally announced a strategic collaboration with OpenAI as the beauty manufacturer looks to expand internal use of artificial intelligence tools across selected areas of its global organization.

The partnership provides Coty employees with access to ChatGPT Enterprise, an AI platform designed for enterprise use with enhanced data security and privacy controls. According to the company, the initial rollout will focus on targeted teams, with flexibility to scale over time.

“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,” said Jerome Auvinet, Coty Chief Information, Digital Innovation & Business Services Officer, in a company press statement, adding that the technology “helps our teams work more efficiently and focus on higher-value contributions.”

Governance and human oversight remain central

Coty said its approach to AI adoption emphasizes governance and responsible deployment, while “human expertise remains central to Coty’s approach.” Coty plans to integrate ChatGPT as “an efficiency enhancer for the creativity and strategic thinking that defines its brands,” the company said in its announcement.

This focus reflects broader discussions across the beauty and personal care sector around the need for oversight as AI tools become more widely used. As previously reported by CosmeticsDesign, beauty industry legal and technology experts like Agatha Liu, attorney at Buane Morris LLP, have cautioned the use of AI outputs, warning that the technology “still requires a considerable amount of human review.”

AI adoption expands beyond pilots

While Coty’s collaboration centers on internal operations, industry observers say AI adoption across beauty continues to expand across functions, from consumer engagement to product development.

For example, in an interview with CDU, Perfect Corp. founder and CEO explained that “We’re seeing more brands using AI to analyze data, collect customer feedback, identify usage patterns to target specific preferences and develop products based on individual profiles.”

Other industry executives have previously highlighted the role of generative AI in improving information flow and engagement. Speaking to CDU in 2024, Max Bennett, co-founder and CEO of Alby explained that “by providing accurate, scientifically-backed information directly to consumers, LLMs can help clarify misconceptions and build trust.”

Responsible use amid an industry-wide shift

The beauty industry overall remains malleable and relatively receptive to the potential benefits of corporate AI adoption, which can range from improving consumer experiences to accelerating R&D efforts for ingredient and product formulation.

In Coty’s case, the collaboration with OpenAI intends to build “on the company’s rapidly accelerating internal AI movement and a global upskilling program designed to give employees across functions the confidence, creativity, and foundational skills to use AI in their day‑to‑day work," according to the company’s press announcement.

The rollout will include “a blend of live training, hands‑on workshops, and leadership engagement...to ensure that employees at every level are equipped to use AI responsibly and effectively," the company added.