PepsiCo bets on AI across China operations to boost efficiency

BEVERAGES giant PepsiCo is deploying artificial intelligence (AI) across its operations in China and beyond to improve efficiency, Anne Tse, its head for the Asia-Pacific region, said.

The company is using AI in areas such as precision agriculture, manufacturing management and consumer analytics, allowing it to expand capacity without proportional increases in headcount, Tse said. Still, PepsiCo is hiring in China as it opens new plants, she added.

PepsiCo is also targeting premium, nutrient-dense products, reducing sugar and sodium while blending local ingredients to align with Chinese culinary traditions. The company is mitigating geopolitical and cost pressures by sourcing 95 per cent of ingredients locally and by commodity hedging, she said.

In January, PepsiCo announced a multi-year collaboration with Siemens and Nvidia to transform its plant and supply-chain operations using advanced technologies, including AI. The company said at the time that it planned to use Siemens’s so-called digital twin technology to simulate and optimise facilities before making physical changes. BLOOMBERG