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Pepsi Implements AI for Consumer Demand Tracking and Faster Product Development

PepsiCo, a large company in the food and beverage industry, is utilizing artificial intelligence (AI) to monitor consumer demand and accelerate the development of new products. This implementation of AI is helping the company increase its sales and introduce fresh products to its customers more quickly.

In 2020, Athina Kanioura, the Chief Strategy and Transformation Officer at PepsiCo, started incorporating AI into the company’s sales, research, and product development processes. According to Kanioura, the company has invested “hundreds of millions” of dollars in recent years to achieve this.


According to Kanioura, in a corporate fact sheet on PepsiCo’s AI initiatives in 2021, the company has been utilizing technology to interact with its customers. With the help of AI, PepsiCo can now gain a better understanding of what their customers desire and how they prefer to engage with the company. The company has access to millions of data sets which allow them to personalize their products and create highly customized experiences.

“Kanioura mentioned that the time it takes for development cycles has been shortened from years to months.”

PepsiCo used an AI tool to examine a vast amount of content on social media, recipes, and menus available online. Based on the insights gathered from this analysis, the company created Off The Eaten Path seaweed snacks within a year.


PepsiCo used AI-generated insights to develop a new product, Propel Water, with immunity-boosting ingredients. This decision was based on consumer interest in immunity, as discovered through research. The new product was successfully launched in stores six months after the insight was obtained.

Frito-Lay, a company owned by PepsiCo that includes Cheetos as one of its products, has implemented artificial intelligence technology to guarantee that the taste and texture of the product remain consistently high in quality.

According to a fact sheet, Denise Lefebvre, Senior Vice President of Foods R&D at PepsiCo, stated that they have developed an AI-powered system to measure and inspect Cheetos, and to determine when changes are required. This is an ideal use of AI technology because they have extensive knowledge of what consumers appreciate about Cheetos and can train the system to recognize those characteristics.

PepsiCo is exploring the use of AI to assist in optimizing the placement of its products in grocery or convenience stores, taking into account the available shelf and floor space.


According to Magesh Bagavathi, who is the Senior Vice President and Chief Technology Officer at PepsiCo, a sales representative can use a video of a store’s shelves to determine which products need to be restocked. This information can be used to customize products based on regional sales trends and events. The data can also provide insights on seasonal and promotional trends, leading to a more efficient planning process.


Expert in the AI field. He is the founder of aidigitalx. He loves AI.