How PepsiCo is Using Generative AI to Get the Perfect Shape and Flavor of Cheetos

• Blockchain Council
• September 12, 2024

PepsiCo, the renowned beverages and snacks maker headquartered in New York, is making waves in the food industry with its innovative utilization of generative artificial intelligence (GenAI). Athina Kanioura, the chief strategy and transformation officer at PepsiCo, recently shared insights with the Economic Times, shedding light on how AI is revolutionizing the way PepsiCo develops and launches products, particularly exemplified by the case of Cheetos.

Kanioura emphasized how GenAI has played a pivotal role in crafting the “perfect shape and flavor” of Cheetos, a beloved snack among consumers. By leveraging customer feedback, GenAI has enabled PepsiCo to refine its product, leading to increased sales and profitability. Kanioura noted a remarkable 15% surge in market penetration attributed to this strategy, underscoring its potential for revenue growth.

Furthermore, PepsiCo’s experimentation with GenAI in marketing campaigns has yielded promising results. Traditional AI typically shortened campaign cycles from 6-9 months to 3-4 months, but GenAI has further expedited these cycles, facilitating swift product launches and enhancing market responsiveness.

Looking ahead, PepsiCo is gearing up for substantial expansion in India, with plans to establish a new capability center and bolster its workforce in the country. Currently employing around 4,000 individuals across its two capability centers in Hyderabad and Gurugram, PepsiCo aims to tap into India’s rich talent pool for global initiatives. Kanioura highlighted the strategic importance of India in PepsiCo’s growth trajectory, emphasizing the elevation of leadership roles and talent utilization.

In terms of industry-wide impact, Kanioura projects that GenAI adoption could lead to a 10-15% increase in revenue, underscoring its transformative potential across sectors. PepsiCo is poised to harness GenAI for data synthesis, advanced analysis, and cross-category synergies to cater to evolving consumer preferences effectively..

The efficacy of AI-driven initiatives is exemplified by Microsoft Project Bonsai, a collaborative endeavor aimed at enhancing Cheetos manufacturing efficiency and consistency while minimizing waste. Through a sophisticated computer vision system, PepsiCo continuously monitors Cheetos attributes and adjusts production processes accordingly. This approach has not only streamlined operations but also empowered employees to focus on tasks where human intervention is paramount.

The AI project’s ability to identify and rectify deviations in product specifications in real-time underscores its role in maintaining product quality. PepsiCo envisions further autonomy for Project Bonsai, aiming to enhance operational efficiency and throughput while upholding the hallmark quality of its Cheetos range.