Estée Lauder has expanded Brian Franz’s remit to include enterprise-wide transformation as the beauty group steps up its use of artificial intelligence to improve operations, product development and online shopping.
Franz, who has overseen the company’s technology, data and analytics functions since joining in April 2025, has been appointed chief technology and transformation officer with immediate effect. He will continue to lead the global technology organisation while taking responsibility for initiatives aimed at increasing revenue and productivity.
The appointment was announced on Tuesday, 8 September, as part of a wider reshaping of responsibilities under chief executive Stéphane de La Faverie. Franz will report directly to de La Faverie and remain a member of Estée Lauder’s executive team.
His expanded role will include accelerating AI-enabled processes, building technology skills across the company and overseeing the continued rollout of Estée Lauder’s enterprise business services programme. The group said the changes were intended to support its “Beauty Reimagined” strategy and create a faster, simpler operating model.
Franz’s agenda covers both the back office and the way millions of customers discover and buy products. Estée Lauder is giving its 14,000 employees access to tools including Microsoft Copilot and ChatGPT, while also developing specialist systems to forecast demand, improve manufacturing and speed up the formulation of new products.
The company has already introduced a “formula navigator” designed to support product development, which Franz said had improved efficiency by 20%. Another system, known as Ella — short for Estée Lauder Line Assistant — is intended to help factory operators resolve equipment problems and reduce the time required to switch production lines between different products.
For consumers, the group has worked with Google Cloud on an AI scent adviser for Jo Malone London and with Adobe on the use of generative AI in digital marketing. It is also preparing to activate Shopify’s agentic commerce capabilities for M.A.C next month, allowing the brand to become more easily discoverable through AI chatbots.
Estée Lauder’s AI shopping push
The move reflects a growing concern among retailers that customers are increasingly turning to chatbots such as Gemini and Claude, as well as platforms including TikTok and Instagram, when researching beauty products.
Estée Lauder is therefore focusing on what the industry calls generative engine optimisation: ensuring that large language models accurately identify its products and direct shoppers to a point of purchase. “What we’re focused on is that they find us in the LLMs, but then, within a click or two clicks, buy that product,” Franz said.
The company’s technology strategy is built around an integrated shopping journey across physical shops, brand websites and third-party platforms, alongside an effort to bring together data accumulated across decades. Its partnership with Shopify is intended to provide a common foundation for direct-to-consumer and omnichannel commerce, while Accenture is helping simplify outsourced technology, finance, procurement, human resources and e-commerce marketing services.
Estée Lauder has sought to embed the changes within its culture through “reverse mentoring”, allowing younger employees with strong technology skills to advise senior executives. Each of its more than 20 brands also has designated AI champions to encourage adoption and develop ideas for AI agents.
“Transformation at The Estée Lauder Companies is not a moment in time or a project with an end date,” de La Faverie said when announcing the expanded roles. “It’s a part of our strategy and is how we operate.”
The technology drive comes as the company attempts to sustain a recovery after weaker demand for cosmetics and fragrances exposed shortcomings in its digital and operating model. Estée Lauder reported a 5 per cent rise in net sales for its 2026 financial year and has forecast organic sales growth of between 3 per cent and 5 per cent for the year ahead.
