Coty Tackling Market Turbulence With AI Demand Planning, Procurement Chatbot

Coty is using tools such as AI and chatbots to elevate its demand planning and procurement capabilities — part of a broader, multi-year transformation effort to streamline operations and boost agility amid volatile global conditions, soft U.S. performance and retailer inventory pullbacks.

Enterprise-Wide Optimizations

According to recent earnings conversations, Coty began a heavy push toward AI enablement last year, and has now implemented the technology across key functions in the company, including marketing, digital, supply chain, procurement and finance.

Within its supply chain, it is using the tech to deploy a clear control tower for demand planning, improving forecasting accuracy. Additionally, the company has launched a price chatbot within its procurement operations to drive smarter, faster decision-making.

To drive digital growth, Coty has shifted how it operates, embedding its digital and e-commerce teams within local markets and brand organizations to enable better omnichannel execution. 

“This new structure ensures we are closer to the consumer, improves channel responsiveness and strengthens our position to win in the fast-evolving e-retail landscape, including TikTok Shop,” said CEO Sue Nabi during a call with investors.

Also: Why Coty is doubling down on dollar stores and e-commerce

As part of this, the company’s marketing teams are using AI-enabled media allocation models that support content creation and optimization, including SEO copy generation and translation capabilities.

Additionally, across its back-end functions, the company has deployed 60 robotics process automation bots for tasks such as accounts payable and IT help desk support. Nabi said that combined with last year’s SAP S/4 HANA implementation, excluding Brazil, these tools are already improving speed and accuracy within ROI measurement.

“These organizational adjustments are delivering early green shoots, including approximately $140 million in productivity savings and initial progress on fixed cost reduction,” said Nabi. “We remain on track to deliver approximately $200 million in combined fixed costs and productivity savings in fiscal 2026.”