Abstract

This case study focuses on PepsiCo’s efforts at recycling and at achieving a circular economy. In 2021, PepsiCo introduced its pep+ strategy to embed sustainability in its operations and long-term business strategy. Two years later, in April 2023, it announced ‘pep+ Partners for Tomorrow’, a new platform to support its customers in achieving custom solutions for their sustainability goals. As part of the ‘Partners for Tomorrow’ initiative, that brought together PepsiCo’s several sustainability offerings including recycling programs, reusable cup initiatives, and regenerative agriculture programs, among others under one platform, PepsiCo collaborated with Intuitive AI to introduce Oscar Sort, an AI-powered recycling assistant designed to improve waste management, in September 2024. Oscar Sort used modular sensor technology designed to facilitate waste sorting, management, and analytics for enterprises. The AI recycling assistant used an interactive digital display to gamify the experience and also provided real-time feedback to educate consumers. The case can be used for the management courses on Consumer Behavior and Sustainability with a focus on using AI to gamify consumer experiences and increase the probability of consumers repeating sustainable habits and how partnering with AI firms could help large companies achieve promised climate targets and sustainability goals.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Discuss the role of AI in integrating sustainability into business practices.
• Explain the benefits and challenges of AI-based waste management practices.
• Examine how smart waste management systems influence consumer attitudes toward recycling and waste management.

Keywords

What is AI?; Use of AI in a business perspective; Understanding intelligent agents; Attitude formation and change; Communication and consumer behavior; Solid waste management; Recycling consumer wastes,Oscar Sort; Recycling; Nudge Theory; UNSDG; Waste Management; Automation