Rudy Lai

AI @ PepsiCo

Beverages + snacks (Lay's, Gatorade, etc.)
Industry
Last updated
July 3, 2025 at 10:44 AM

Summary

  • PepsiCo has steadily increased its adoption of AI across its value chain from 2019 to early 2026, evolving from early exploratory uses in manufacturing and product development to advanced agentic AI implementations in supply chain, procurement, customer support, and marketing.
  • Key partnerships with major technology players like Salesforce (Agentforce) and AWS have accelerated PepsiCo's AI-driven digital transformation, enabling enhanced operational efficiency, improved customer experiences, and innovative product offerings such as AI Hydration Coach and smart packaging devices.
  • Recent initiatives focus on integrating AI with digital twin technology and ethical AI practices through collaborations with Siemens, NVIDIA, and Stanford Institute, signaling a mature, responsible AI strategy driving significant impact on revenue growth, cost reduction, and risk management.

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7 AI Use Cases at PepsiCo

Digital Twins
2026
Traditional
Generative
Agentic
Outcome
Risk
PepsiCo collaborates with Siemens and NVIDIA to implement AI-powered digital twin technology for scalable, precise simulation and optimization of plant and supply chain operations. [1][2]
Customer Support
2025
Customer Facing
Traditional
Generative
Agentic
Outcome
Deploying agentic AI agents through tools like Salesforce's Agentforce, PepsiCo automates routine tasks and enables faster, more responsive customer service interactions to enhance customer experience. [1][2]
Procurement Efficiency
2025
Traditional
Generative
Agentic
Outcome
Costs
PepsiCo leverages agentic AI to automate and optimize procurement decision-making, improving operational efficiency and supplier management through advanced AI agents. [1][2]
Supply Chain Automation
2025
Traditional
Generative
Agentic
Outcome
Costs
PepsiCo uses AI-powered systems to automate supply chain processes including inventory management, route optimization, crop planning, and warehouse label reading, leading to improved efficiency and cost savings. [1][2][3]
Product Innovation
2024
Traditional
Generative
Agentic
Outcome
Revenue
AI-driven data analytics and generative AI models help PepsiCo identify emerging consumer trends and develop new products that align with evolving tastes and preferences. [1][2][3]
Marketing Optimization
2023
Traditional
Generative
Agentic
Outcome
Revenue
PepsiCo utilizes AI tools like 'Ada' to research and strategize marketing campaigns, leveraging real-time consumer data and menu recipe analysis for targeted advertising and trend identification. [1][2]
Manufacturing Quality
2023
Traditional
Generative
Agentic
Outcome
Costs
AI-powered predictive maintenance, equipment monitoring, and quality control systems improve manufacturing efficiency and maintain product quality at PepsiCo's facilities. [1][2][3]

Timeline

2026 Q1

1 updates

Launched industry-first collaboration with Siemens and NVIDIA on AI and digital twin technology to transform plant and supply chain operations sustainably.

2025 Q4

2 updates

PepsiCo accelerates AI adoption by buying top AI tech and integrating processes in-house; uses AI for predictive maintenance, smarter route planning, and supply chain innovation.

2025 Q3

1 updates

Agentic AI deployed to modernize field execution and customer experience; AI agents improve inventory transparency and in-store execution, boosting efficiency and sales.

2025 Q2

2 updates

Expanded partnership with Salesforce to utilize Agentforce agentic AI for procurement, sales, and customer support; deepened collaboration with AWS for cloud-based AI innovation.

2025 Q1

1 updates

Introduced AI-driven logistics optimization for wholesale distribution; increased automation and agentic AI adoption, reshaping operations from production to supply chain.

2024 Q4: no updates

2024 Q3

1 updates

AI enhanced product development strategies for customer engagement and deployed robotics with AI-powered crop planning in supply chain operations.

2024 Q2

2 updates

PepsiCo applied generative AI for product development, supply chain management, and marketing, and showcased AI-powered smart cans and hydration coach devices.

2024 Q1: no updates

2023 Q4

2 updates

Introduced in-house AI tool 'Ada' for marketing research and the 'Tastewise' AI platform to analyze consumer eating behaviors and trends.

2023 Q3

1 updates

AI employed in supply chain automation, warehouse label reading, quality control, emphasizing human-centered and ethical AI design.

2023 Q2

3 updates

PepsiCo expanded AI use in manufacturing (e.g., equipment monitoring for Cheetos production) and initiated ethical AI research collaboration with Stanford.

2023 Q1: no updates

2022 Q4: no updates

2022 Q3: no updates

2022 Q2: no updates

2022 Q1: no updates

2021 Q4

1 updates

AI became a fundamental tool in PepsiCo's digital transformation, deeply integrated across business and employee functions.

2021 Q3: no updates

2021 Q2

1 updates

PepsiCo leveraged AI and data analytics to drive product innovation and marketing strategies, focusing on anticipating consumer needs.

2021 Q1: no updates

2020 Q4: no updates

2020 Q3: no updates

2020 Q2: no updates

2020 Q1: no updates

2019 Q4: no updates

2019 Q3: no updates

2019 Q2

1 updates

PepsiCo explored AI and machine learning across the organization, including robots and ML solutions mainly in manufacturing and operations.