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Product cover image for AI at Scale: PepsiCo's Balancing Act of Growth, Efficiency, and Governance

AI at Scale: PepsiCo's Balancing Act of Growth, Efficiency, and Governance

Sheri Lambert, Amy Lavin, Bora Ozkan

Product #:W48500
Supplier:Ivey/Temple
Discipline:General Management, Strategy
Setting:United States, 2025
Details:Case (PDF) • 15 pages • 2026-04-14

Subjects:

Leadership and managing peopleManagementStrategy

Industries:

Food and beverage sector

Geography:

United StatesNorth America
Your Price:$9.71

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This case explores PepsiCo’s enterprise-wide artificial intelligence (AI) transformation, highlighting how the company built a strong digital foundation and scaled AI across marketing, supply chain, finance, and governance. Beginning with a global cloud and data modernization effort, PepsiCo established the infrastructure and governance needed to treat data as a strategic asset. It then applied AI to drive consumer insights (via Pepviz™), hyper-personalized marketing, supply chain automation, and predictive analytics. The case also examines the financial trade-offs between CapEx-heavy automation and OpEx-driven generative AI initiatives, as well as the strategic and ethical challenges of deploying AI responsibly at scale.

Learning Objectives

This case is suitable for use in MBA, executive education, and advanced undergraduate electives on digital transformation and information systems—cloud migration, data governance, and AI readiness, marketing and supply chain—consumer insights, personalization, and operational efficiency, finance and accounting—ROI/NPV trade-offs between automation and GenAI, and strategy and governance—balancing innovation, risk, and responsible AI practices. It fits particularly well in multidisciplinary executive programs where participants explore the cross-functional impact of AI. It can serve as a capstone discussion linking technology, operations, finance, and strategy. After working through the case and assignment questions, students will be able to do the following:
  • Explain why a strong data and cloud foundation is essential for scaling AI.
  • Analyze how AI applications drive value in marketing (Pepviz) and supply chain management (AutoScheduler).
  • Evaluate the financial trade-offs between CapEx-heavy automation and OpEx-driven GenAI using ROI/NPV frameworks.
  • Discuss governance and ethical considerations in deploying AI responsibly at enterprise scale.
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Case Study: AI at Scale: PepsiCo's Balancing Act of Growth, Efficiency, and Governance (English version) | Ivey Publishing