PepsiCo Spearheads Revolutionary AI and Digital Twin Partnership with Siemens and NVIDIA

PepsiCo has announced a groundbreaking collaboration with Siemens and NVIDIA to revolutionize its plant and supply chain operations through advanced AI and digital twin technology. Unveiled at CES 2026, this partnership aims to transform how facilities are designed, tested, and optimized, setting a new industry standard for digital transformation and operational efficiency.

The initiative leverages Siemens' Digital Twin Composer, built on NVIDIA Omniverse libraries, to create high-fidelity 3D digital twins of PepsiCo's facilities. These digital replicas simulate every aspect of plant operations, from machinery to supply chain logistics, with physics-level accuracy. This enables AI agents to identify and resolve up to 90% of potential issues before any physical modifications are made, significantly reducing costs and improving throughput.

The Role of AI and Digital Twins in Manufacturing

The collaboration highlights the growing importance of AI and digital twin technology in modern manufacturing. By simulating and testing changes in a virtual environment, companies like PepsiCo can optimize their operations without the need for costly and time-consuming physical trials. This approach not only enhances efficiency but also allows for more agile and responsive supply chains, better equipped to meet evolving consumer demands.

Early pilots of the technology have already demonstrated promising results, with a 20% increase in throughput and reductions in capital expenditure (Capex) by 10 to 15%. The ability to uncover hidden capacity and validate investments in a virtual environment is a game-changer for the industry, enabling faster design cycles and nearly 100% design validation.

A New Standard for Industrial Operations

The partnership between PepsiCo, Siemens, and NVIDIA sets a new benchmark for scalable and technically sound digital twin and AI integration in industrial operations. Siemens brings its expertise in industrial AI and comprehensive digital twin technology, while NVIDIA contributes its AI and visualization capabilities. Together, they provide a holistic solution that combines 2D and 3D digital twin data with real-time physical information, creating a secure, high-fidelity 3D experience throughout the lifecycle of products and facilities.

PepsiCo's commitment to digital transformation is evident in its shift to a digital-first planning strategy. By embedding AI throughout its operations, the company aims to operate with greater agility and foresight, better meeting the needs of its consumers and customers. This strategic move aligns with PepsiCo's broader vision to be the global leader in drinks and convenient foods, driven by its pep+ (PepsiCo Positive) initiative, which emphasizes sustainability and growth.

The announcement underscores the transformative potential of AI and digital twin technology in reshaping industrial operations. As more companies adopt these technologies, the industry is poised for significant advancements in efficiency, innovation, and sustainability.