Case Study
How PepsiCo and Mercedes-Benz Are Transforming Innovation with AI
PepsiCo: Improving R&D and Sustainability with AI
PepsiCo has drastically shortened its product development cycle using generative AI technologies. What traditionally took several months can now be accomplished in as little as six weeks. AI analyses key product attributes like ingredients, packaging, and evolving consumer preferences to optimize for taste, texture, and appeal.
Example: This process has successfully created new and fun flavours.
Partnering with Starmind, PepsiCo modernized its knowledge-sharing practices across global R&D teams. The platform allows for efficient access to technical resources, reducing duplicated efforts and speeding up innovation cycles.
Impact: 96% of internal queries are now answered through the system, significantly improving collaboration and decision-making.
Committed to environmental responsibility, PepsiCo uses AI to support sustainable farming. By collecting over a million data points on potato cultivation — from seed type to irrigation techniques — AI models help farmers increase yields while reducing water usage, pesticide dependency, and greenhouse gas emissions.
PepsiCo's manufacturing processes are enhanced by AI-powered sensors that monitor equipment health through vibration, temperature, and magnetic analysis.
Benefit: These sensors predict potential malfunctions weeks in advance, allowing proactive maintenance, minimising downtime, and contributing to lower operational waste.
Using AI-driven analytics on consumer data, including social media trends, PepsiCo can swiftly identify their audiences' demands.
Examples:
-
AI detected rising consumer interest in seaweed, prompting the development of seaweed-based snacks.
-
The surge in demand for immunity-boosting products led to new beverage launches with added health benefits.
Mercedes-Benz: Elevating the Driving Experience with AI
In December 2024, Mercedes-Benz enhanced its MBUX Voice Assistant by integrating OpenAI's ChatGPT via Microsoft Azure.
Key Features:
-
Handles complex, multi-turn conversations
-
Provides real-time information by leveraging Bing search
-
Supports natural follow-up questions for more intuitive dialogue
Through collaboration with Cerence, Mercedes-Benz introduced “Travel Knowledge,” combining eye-tracking and voice interaction.
Example: A driver can gaze at a landmark and ask, "What's that building?" — receiving immediate, contextual responses without distraction.
The MBUX system learns driver habits, such as automatically activating seat heaters based on past preferences and outside temperature.
Goal: Increase driver comfort while reducing the need for manual settings.
AI-powered voice controls now manage navigation, climate, and entertainment systems, reducing driver distraction and increasing road safety.
Through regular over-the-air updates, Mercedes-Benz ensures that MBUX evolves continuously with new features, user feedback, and security enhancements.
-
Higher User Satisfaction: Drivers appreciate the system’s intuitive ease of use and personalization.
-
Increased Safety: Hands-free operations reduce distraction-related risks.
-
Greater Accessibility: Natural language processing enables drivers of all tech levels to easily interact with their vehicles.
Conclusion
PepsiCo and Mercedes-Benz demonstrate the power of AI-driven transformation — whether it’s accelerating product innovation, enabling sustainable practices, or creating safer, smarter experiences for consumers. Their success stories offer a blueprint for organizations looking to unlock growth and innovation through intelligent technologies.
Ready to explore how AI can transform your business? Reach out to our team today.
Get in touch with our team to explore how AI can transform your business. We’ll assess your current infrastructure, recommend tailored solutions, and help you implement AI effectively to achieve measurable results.
© 2025 Simply AI. All rights reserved.
