Companies × risks
L'Oreal
L'Oreal deploys AI from major vendors (Azure OpenAI, NVIDIA AI Enterprise) across consumer-facing experiences and internal workflows, including its Beauty Genius AI assistant and CREAITECH marketing platform. It also develops specialised models through its ModiFace subsidiary, including computer vision and GAN-based methods for beauty applications, and a formulation-focused custom foundation model.
We reviewed 7 public documents from L'Oreal and found it acknowledges 5 of 24 AI risks, including discrimination and false information.
Sector: Agriculture, Mining, Construction and Manufacturing; Chemicals & pharmaceutical manufacturing
Roles: AI deployer; Specialized AI developer
AI risks L'Oreal acknowledges
- Discrimination: “L'Oréal wishes to promote the responsible use of AI, notably to avoid algorithmic bias.” (L'Oreal - CODE OF ETHICS)
- False information: “the increase in the risk of false or incorrect information about the Group, its brands and its products being posted on social media, with this risk heightened by the growing use of artificial intelligence” (L'Oreal 2024 Universal Registration Document)
- Unequal performance: “as the tool does not perform as well for certain specific skin tones” (L'Oreal - CODE OF ETHICS)
- Overreliance & unsafe use: “WE WILL NOT ... Over rely on algorithmic decision-making without safeguards and human oversight.” (L'Oreal - CODE OF ETHICS)
- Devaluation of human creativity: “The proliferation of content generated using Artificial Intelligence (AI) is giving rise to a number of risks in terms of intellectual property, including uncertainty as to the ownership of rights to works and the possibility of benefitting from copyright protection, as well as a higher risk of infringement of third-party rights.” (L'Oreal 2024 Universal Registration Document)
Documents we reviewed
- Culture and Talents L'Oréal (Investor materials, 2024)
- L'Oreal 2024 Annual Report - The Essentials (Annual report, 2024)
- L'Oréal – AGM Answers to investor questions 29 April 2025 (Investor materials, 2025)
- Ethics L'Oréal (Investor materials, 2024)
- L'Oréal, the Beauty Tech champion (Investor materials, 2024)
- L'Oreal 2024 Universal Registration Document (Annual report, 2024)
- L'Oreal - CODE OF ETHICS (Corporate policy, 2023)