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PepsiCo sparks concern after announcing AI-powered update to its operations: 'Reshaping our business in ways that were once unimaginable'

Many other brands across retail are expected to start feeling the pressure to follow suit.

Many other brands across retail are expected to start feeling the pressure to follow suit.

Photo Credit: Depositphotos.com

When you think about soda, artificial intelligence might not be the first thing that comes to mind — but that might be about to change. 

According to a press release, Pepsi has announced a major investment in Salesforce's AI-powered Agentforce technology. It's another decision made by the consumer packaged goods giant that has environmental advocates concerned about the company's policies.

What's happening?

Agentforce is going to be used in several aspects of Pepsi's business using "autonomous AI agents." They'll serve in functions encompassing inventory management, online ordering, customer service, targeted marketing, and more.

"AI is reshaping our business in ways that were once unimaginable," said PepsiCo's chairman and CEO, Ramon Laguarta. "This collaboration with Salesforce is another step toward a more connected and adaptive PepsiCo."

It's a major win for Salesforce, which until now had yet to partner with a major food and beverage brand on such a massive scale. 

PepsiCo products are consumed more than a billion times a day around the globe.


Why is the usage of AI so controversial?

While the partnership likely bodes well for both companies' profit margins, environmental advocates are concerned about the impact it will have on Pepsi's carbon footprint.

The explosive adoption of AI has been highly controversial for this reason. Between consuming massive amounts of water and electricity in computer mega-warehouses, generating both noise and air pollution, creating electronic waste, and relying on rare minerals, artificial intelligence takes a heavy toll on our planet.

With a massive brand like Pepsi moving forward with this all-in rollout, many other brands across retail are expected to start feeling the pressure to follow suit. 

One article from Digital Commerce 360 described the new adoption not just as a tech upgrade, but as "a foundational change" for how the CPG giant does business.

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It's not the first time Pepsi has made a business decision that has sparked alarm among scientists and environmental advocates. It has been ranked among the top five worst plastic polluters on the planet, according to a Global Brand Audit by Break Free From Plastic. 

In fact, in 2023, Pepsi's branded plastic items outnumbered those of Coca-Cola, which has long served as the world's number one offender when it comes to generating plastic waste.

What's Pepsi doing to become more environmentally friendly?

Granted, the food and beverage leviathan has also made moves to be more sustainable amid the mounting pressures of both consumer interest and possible regulatory action. 

For example, it has handed out $6 million in grants to fund regenerative agriculture projects, and it has started to experiment with lower-footprint packaging options. 

It also operates recyclable and returnable bottle programs in a handful of countries, and it has pledged to use 40% or more recycled content in its plastic packaging by 2035.

However, many organizations are doubtless keeping a sharp eye on the new Salesforce partnership, ready to report on the specific environmental impact of this Agentforce deployment. 

Around the world, AI regulations are only beginning to take shape, as the industry has vastly outpaced the ability of governments to regulate it.

And in the meantime, consumers are urged to keep a sharp eye out for greenwashing — with Pepsi's products and beyond — and look at what a company is truly doing, not just how it's marketing itself, when it comes to being environmentally friendly.

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