Consumer goods giant L’Oréal has partnered with IBM to leverage GenAI technology in advancing sustainable cosmetics. The initiative will use AI to analyse data on ingredients, chemical properties and environmental impact, aiming to identify sustainable ingredient alternatives and reduce energy and material waste. This effort supports L’Oréal’s 4,000 researchers worldwide, aligning with the organization’s “L’Oréal for the Future” strategy, which includes goals such as achieving carbon neutrality and 100% renewable energy by 2025. By 2030, L’Oréal aims to halve its greenhouse gas emissions per finished product and source the majority of its formulas from bio-sourced materials.
AI already reshaped nearly every aspect of life in 2024, from personalized music recommendations to breakthroughs in healthcare diagnostics. However, its adoption across businesses remains uneven, and use cases are still limited. Looking ahead, 2025 is poised to be the year organizations accelerate their AI implementations. A 2024 Verdantix survey of 252 AI decision-makers across Europe and North America finds that firms plan to increase their investment in AI projects across all functions, with sustainability ranking as a top-three priority for almost a quarter of respondents.
AI's potential for sustainability spans various industries, with applications ranging from renewable energy forecasting to decarbonization project management and automated report generation. In the manufacturing sector, for example, AI is enabling more efficient resource use and more sustainable product design.
Despite its potential, the widespread adoption of AI faces challenges. A lack of strategic guidance and internal expertise often slows progress. To address this, firms such as SK Group and IKEA have implemented employee training programmes to build the necessary skills for navigating AI’s complexities. However, broader collaboration across departments and further evaluation of AI’s role in sustainability are essential to scaling its impact.
For more on how AI is unlocking new opportunities in the sustainability space, how organizations are allocating budgets for AI projects and predictions for AI in 2025, visit the Verdantix AI Applied research portal.
