Rudy Lai
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AI @ PepsiCo

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

Summary

  • PepsiCo has progressively embedded AI and machine learning across its operations from 2019 through 2025, evolving from initial adoption for production efficiency (e.g., Cheetos manufacturing) to advanced generative and agentic AI applications powering product development, supply chain, marketing, and customer experience.
  • Key leadership such as Chief Strategy and Transformation Officer Kanioura have driven a strategic AI roadmap emphasizing ethical AI collaboration (notably with Stanford), partnerships with major cloud providers like AWS and Salesforce, and deployment of AI agents (Agentforce) to boost operational efficiency and responsiveness, especially in sales and customer support.
  • Recent developments (2024-2025) show a strong trend toward agentic AI autonomously managing routine tasks with measurable business impact on revenue growth, cost reduction, and customer experience improvement, augmented by innovations like AI hydration coaches for Gatorade and AI-powered smart cans, illustrating both internal process transformation and customer-facing tech enhancements.

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6 AI Use Cases at PepsiCo

Operational Execution
2025
Traditional
Generative
Agentic
Outcome
AI agents improve in-store execution by providing inventory transparency and facilitating rapid resolution of issues, enabling field teams to work collaboratively with AI to optimize shelf stocking and customer engagement. [1]
Customer Support
2025
Customer Facing
Traditional
Generative
Agentic
Outcome
Deployment of AI agents (Agentforce) automates routine customer support tasks, enhances responsiveness, and supports sales teams by providing actionable digital labor, leading to improved customer experience and operational efficiencies. [1][2]
Supply Chain Automation
2024
Traditional
Generative
Agentic
Outcome
Costs
PepsiCo applies AI and robotics to automate supply chain operations, including crop planning powered by AI predictive insights to optimize agriculture inputs and improve production efficiency, as well as AI-driven logistics optimization for route planning and inventory management. [1][2]
Demand Forecasting
2024
Traditional
Generative
Agentic
Outcome
Costs
PepsiCo utilizes generative AI models to analyze consumer behavior and market trends data, enabling more accurate prediction of product demand across regions to optimize inventory levels and supply chain planning. [1]
Product Innovation
2023
Traditional
Generative
Agentic
Outcome
Revenue
AI analyzes massive online menu and recipe data to detect emerging food trends and consumer preferences, informing PepsiCo’s product development pipeline to create new offerings consumers are likely to embrace. [1][2]
Marketing Insights
2023
Traditional
Generative
Agentic
Outcome
Revenue
In-house AI tools assist marketing teams by processing large datasets to generate insights that direct campaign strategies and creative decision-making, enhancing the relevance and effectiveness of advertising efforts. [1]

Timeline

2025 Q3

1 updates

PepsiCo continues strategic investment in agentic AI to modernize field execution and customer experience, implementing AI agents to automate routine tasks and enhance inventory transparency, in-store execution, and customer service responsiveness, driving operational efficiency and revenue growth.

2025 Q2

1 updates

Expanded collaboration with Salesforce leveraging Agentforce AI agents enhances customer support, sales team productivity, and operational efficiency; partnership with AWS accelerates AI-driven digital transformation toward cloud-based, agentic AI-first roadmap.

2025 Q1

1 updates

Agentic AI-driven automations begin disrupting CPG operations; AI-powered logistics optimize wholesale distribution through advanced machine learning for route and inventory management; holistic operational transformation underway.

2024 Q4: no updates

2024 Q3

1 updates

Robotics and AI-powered crop planning transform PepsiCo’s supply chain; AI adoption extends to product development with focus on improved customer engagement and personalized recommendations.

2024 Q2

1 updates

PepsiCo increasingly uses generative AI for precise consumer demand forecasting, supply chain optimization, product innovation, sustainability initiatives, and develops customer-centric AI devices such as AI Hydration Coach for Gatorade.

2024 Q1: no updates

2023 Q4

1 updates

Deployment of AI tool Tastewise monitors millions of menus and recipes to capture consumer eating trends; internal AI tool Ada powers marketing research and campaign planning.

2023 Q3

1 updates

PepsiCo applies AI in supply chain automation and quality control, emphasizing human-centered and ethical AI approaches in operational deployments.

2023 Q2

1 updates

PepsiCo actively collaborates with Stanford Institute for Human-Centered AI to establish ethical AI standards; embeds AI in production lines, e.g., monitoring and adjusting Cheetos manufacturing; focuses on AI to improve efficiency and reduce costs.

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 becomes a fundamental element of PepsiCo’s digital transformation, used as a vital tool for both business operations and employee enablement.

2021 Q3: no updates

2021 Q2

1 updates

PepsiCo leverages AI and data analytics throughout the product lifecycle, from innovation to marketing, to create consumer products aligned with latent demand.

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 begins adopting AI and machine learning broadly across the organization including robotics and automation to enhance operations.