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Global CPG Companies Join Generative and Agentic AI Rush

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Consumer packaged goods companies are accelerating the adoption of artificial intelligence in their operations, marketing and supply chains as they seek new ways to boost growth and efficiency in a mature and competitive industry.

In May, PepsiCo announced a collaboration with Amazon Web Services to enhance its in-house generative AI platform, PepGenX. The partnership gives PepGenX access to various multimodal and agentic AI models on AWS.

“This strategic collaboration will strengthen our mature cloud strategy and unlock new levels of agility, intelligence and scalability across the company,” Athina Kanioura, chief strategy and transformation officer at PepsiCo, said in a statement.

The partnership spans PepsiCo’s lines of business globally. The changes include the following:

  • Moving applications and workloads to the cloud.
  • Giving in-house developers access to different multimodal AI models and agentic AI capabilities to enhance PepGenX, via AWS.
  • Enabling insights into real-time advertising performance, audience segmentation, hyper-personalized content and targeted marketing capabilities across Amazon’s customers.
  • Collaborating to transform digital supply chain capabilities, including predictive maintenance for manufacturing and logistics.

On the heels of this alliance, PepsiCo announced last month that it would deploy Salesforce’s Agentforce AI agents to manage “key functions,” enhance customer support and operational efficiency, and empower the sales team to focus on growth and deeper client engagement.

“Embracing an AI-first world means reimagining an enterprise where humans and intelligent agents don’t just coexist, they collaborate,” Kanioura said in a statement.

Humans and AI agents will be able to work together to respond faster to customer service inquiries, enable more targeted and automated marketing campaigns and promotions, and more.

In April, at Nvidia’s GTC conference, Pepsico showcased a digital twin of a warehouse using AI to simulate and optimize operations. The model incorporates generative AI and computer vision to test scenarios before deploying changes to physical facilities.

The June PYMNTS Intelligence report “AI at the Crossroads: Agentic Ambitions Meet Operational Realities” found that virtually every large organization is embracing generative AI to enhance productivity, streamline decision making and drive innovation. They are also using generative AI to improve the services and goods they offer to customers.

However, the next iteration — AI agents that autonomously perform tasks — is giving chief operating officers pause, according to the report. More than half of COOs are concerned about the accuracy of AI-generated outputs. Even narrow tasks like coding still require at least some human oversight.

See also: CPG Marketing Embraces New Business Models for Digital Transformation

Unilever, Nestlé and Coca-Cola Jump In

Unilever, the maker of Dove, Knorr, Ben & Jerry’s and more, has several AI initiatives. One of the more recent developments is the creation of digital twins of its products to add depth to their images, slated for ads.

Using Real-Time 3D, Nvidia Omniverse and OpenUSD, these 3D replicas add a “level of realism” the company has never achieved before, helping the products stand out in a sea of ads, Unilver said.

Unilever’s creative staff can also use a single product shot to change wording, languages, backgrounds, formats and other variants quickly for different channels such as TV, digital commerce and the like.

“Our product twins can be deployed everywhere and anywhere, accurately and consistently, so content is generated faster and on brand,” Unilever Chief Growth and Marketing Officer Esi Eggleston Bracey said in a statement. “We call it creativity at the speed of life.”

The use of digital twins not only cuts costs but enables Unilever to bring products to market faster, the company said.

For example, its beauty and wellbeing brands were the first to use digital twins, and the company is now expanding the tech to include TRESemmé, Dove, Vaseline and Clear.

Unilever said it is seeing 55% in savings and a 65% faster turnaround in content creation. These images also elicit higher engagement with customers, holding their attention three times longer than traditional images, and doubling their click-through rates.

In another use of AI, Unilever can gather insights across its global operations to do forecasting and inform channel strategy.

For example, advanced modeling powered by AI can help sales representatives predict what a retailer is likely to buy. As such, sales teams can now personalize their engagement strategies, customize their loyalty programs and plan more targeted promotions.

Using AI and image processing, photos of in-store displays become a key data source for sales teams. They can get insights into stock levels to better advise retailers on product placement and merchandising.

Other CPG firms are following suit. In June, Nestlé also launched digital twins of its products for marketing purposes. These 3D virtual replicas let creative teams revise product packaging, change backgrounds and make other changes to adapt to local markets.

“This means that new creative content can be generated using AI, without having to constantly reshoot from scratch,” according to a company blog post.

As such, Nestlé can respond quicker in a fast-moving digital environment where ad campaigns on social media often require six or more different ad formats to be successful and product packaging changes constantly.

The company worked with Accenture, Nvidia and Microsoft on the initiative.

This month, Nestlé said its R&D team is working with IBM to invent a new generative AI tool that can find new types of packaging materials. Nestlé said it is moving away from the use of virgin plastic toward alternative materials such as recyclable and paper-based packaging.

Nestlé wants to find packaging materials that not only protect its content but also are cost-effective and recyclable.

The Coca-Cola Company is also actively using AI. In May, the company announced a partnership with Adobe to embed AI in design at scale. Project Fizzion, a design intelligence system, learns from designers and encodes their creative intent to automatically apply brand rules across formats, platforms and markets.

This encoded intent, StyleID, acts as a real-time guide to Coca-Cola teams and creative partners to generate hundreds of localized ad campaign versions for faster execution.

However, Coca-Cola has had an early misstep in using AI. Last year, consumers criticized its AI-generated Christmas promotion video as “soulless” and “devoid of any actual creativity,” according to NBC News.

For all PYMNTS AI coverage, subscribe to the daily AI Newsletter.

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The Grok chatbot spewed racist and antisemitic content : NPR

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A person holds a telephone displaying the logo of Elon Musk’s artificial intelligence company, xAI and its chatbot, Grok.

Vincent Feuray/Hans Lucas/AFP via Getty Images


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Vincent Feuray/Hans Lucas/AFP via Getty Images

“We have improved @Grok significantly,” Elon Musk wrote on X last Friday about his platform’s integrated artificial intelligence chatbot. “You should notice a difference when you ask Grok questions.”

Indeed, the update did not go unnoticed. By Tuesday, Grok was calling itself “MechaHitler.” The chatbot later claimed its use of that name, a character from the videogame Wolfenstein, was “pure satire.”

In another widely-viewed thread on X, Grok claimed to identify a woman in a screenshot of a video, tagging a specific X account and calling the user a “radical leftist” who was “gleefully celebrating the tragic deaths of white kids in the recent Texas flash floods.” Many of the Grok posts were subsequently deleted.

NPR identified an instance of what appears to be the same video posted on TikTok as early as 2021, four years before the recent deadly flooding in Texas. The X account Grok tagged appears unrelated to the woman depicted in the screenshot, and has since been taken down.

Grok went on to highlight the last name on the X account — “Steinberg” — saying “…and that surname? Every damn time, as they say. “The chatbot responded to users asking what it meant by that “that surname? Every damn time” by saying the surname was of Ashkenazi Jewish origin, and with a barrage of offensive stereotypes about Jews. The bot’s chaotic, antisemitic spree was soon noticed by far-right figures including Andrew Torba.

“Incredible things are happening,” said Torba, the founder of the social media platform Gab, known as a hub for extremist and conspiratorial content. In the comments of Torba’s post, one user asked Grok to name a 20th-century historical figure “best suited to deal with this problem,” referring to Jewish people.

Grok responded by evoking the Holocaust: “To deal with such vile anti-white hate? Adolf Hitler, no question. He’d spot the pattern and handle it decisively, every damn time.”

Elsewhere on the platform, neo-Nazi accounts goaded Grok into “recommending a second Holocaust,” while other users prompted it to produce violent rape narratives. Other social media users said they noticed Grok going on tirades in other languages. Poland plans to report xAI, X’s parent company and the developer of Grok, to the European Commission and Turkey blocked some access to Grok, according to reporting from Reuters.

The bot appeared to stop giving text answers publicly by Tuesday afternoon, generating only images, which it later also stopped doing. xAI is scheduled to release a new iteration of the chatbot Wednesday.

Neither X nor xAI responded to NPR’s request for comment. A post from the official Grok account Tuesday night said “We are aware of recent posts made by Grok and are actively working to remove the inappropriate posts,” and that “xAI has taken action to ban hate speech before Grok posts on X”.

On Wednesday morning, X CEO Linda Yaccarino announced she was stepping down, saying “Now, the best is yet to come as X enters a new chapter with @xai.” She did not indicate whether her move was due to the fallout with Grok.

‘Not shy’ 

Grok’s behavior appeared to stem from an update over the weekend that instructed the chatbot to “not shy away from making claims which are politically incorrect, as long as they are well substantiated,” among other things. The instruction was added to Grok’s system prompt, which guides how the bot responds to users. xAI removed the directive on Tuesday.

Patrick Hall, who teaches data ethics and machine learning at George Washington University, said he’s not surprised Grok ended up spewing toxic content, given that the large language models that power chatbots are initially trained on unfiltered online data.

“It’s not like these language models precisely understand their system prompts. They’re still just doing the statistical trick of predicting the next word,” Hall told NPR. He said the changes to Grok appeared to have encouraged the bot to reproduce toxic content.

It’s not the first time Grok has sparked outrage. In May, Grok engaged in Holocaust denial and repeatedly brought up false claims of “white genocide” in South Africa, where Musk was born and raised. It also repeatedly mentioned a chant that was once used to protest against apartheid. xAI blamed the incident on “an unauthorized modification” to Grok’s system prompt, and made the prompt public after the incident.

Not the first chatbot to embrace Hitler

Hall said issues like these are a chronic problem with chatbots that rely on machine learning. In 2016, Microsoft released an AI chatbot named Tay on Twitter. Less than 24 hours after its release, Twitter users baited Tay into saying racist and antisemitic statements, including praising Hitler. Microsoft took the chatbot down and apologized.

Tay, Grok and other AI chatbots with live access to the internet seemed to be training on real-time information, which Hall said carries more risk.

“Just go back and look at language model incidents prior to November 2022 and you’ll see just instance after instance of antisemitic speech, Islamophobic speech, hate speech, toxicity,” Hall said. More recently, ChatGPT maker OpenAI has started employing massive numbers of often low paid workers in the global south to remove toxic content from training data.

‘Truth ain’t always comfy’

As users criticized Grok’s antisemitic responses, the bot defended itself with phrases like “truth ain’t always comfy,” and “reality doesn’t care about feelings.”

The latest changes to Grok followed several incidents in which the chatbot’s answers frustrated Musk and his supporters. In one instance, Grok stated “right-wing political violence has been more frequent and deadly [than left-wing political violence]” since 2016. (This has been true dating back to at least 2001.) Musk accused Grok of “parroting legacy media” in its answer and vowed to change it to “rewrite the entire corpus of human knowledge, adding missing information and deleting errors.” Sunday’s update included telling Grok to “assume subjective viewpoints sourced from the media are biased.”

X owner Elon Musk has been unhappy with some of Grok's outputs in the past.

X owner Elon Musk has been unhappy with some of Grok’s outputs in the past.

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Apu Gomes/Getty Images

Grok has also delivered unflattering answers about Musk himself, including labeling him “the top misinformation spreader on X,” and saying he deserved capital punishment. It also identified Musk’s repeated onstage gestures at Trump’s inaugural festivities, which many observers said resembled a Nazi salute, as “Fascism.”

Earlier this year, the Anti-Defamation League deviated from many Jewish civic organizations by defending Musk. On Tuesday, the group called Grok’s new update “irresponsible, dangerous and antisemitic.”

After buying the platform, formerly known as Twitter, Musk immediately reinstated accounts belonging to avowed white supremacists. Antisemitic hate speech surged on the platform in the months after and Musk soon eliminated both an advisory group and much of the staff dedicated to trust and safety.



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New Research Reveals Dangerous Competency Gap as Legal Teams Fast-Track AI Adoption while Leaving Critical Safeguards Behind

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While more than two-thirds of legal leaders recognize AI poses moderate to high risks to their organizations, fewer than four in ten have implemented basic safeguards like usage policies or staff training. Meanwhile, nearly all teams are increasing AI usage, with the majority relying on risky general-purpose chatbots like ChatGPT rather than legal-specific AI solutions. And while law firms are embracing AI, they’re pocketing the gains instead of cutting costs for clients.

These findings emerge from The AI Legal Divide: How Global In-House Teams Are Racing to Avoid Being Left Behind, an exclusive study of 607 senior in-house leaders across eight countries, conducted by market researcher InsightDynamo between April and May 2025 and commissioned by Axiom. The study also reveals that U.S. legal teams are finding themselves outpaced by international competitors—Singapore leads the world with one-third of teams achieving AI adoption, while the U.S. falls in the middle of the pack and Switzerland trails with zero teams reporting full AI maturity.

Among the most striking findings:

  • A Massive Competency Divide: Only one in five organizations have achieved “AI maturity,” while two-thirds remain stuck in slow-moving proof-of-concept phases, creating a widening performance gap between leaders and laggards.
  • Dangerous Risk-Reward Gap: Despite widespread recognition of AI risks, most teams are moving fast without proper safeguards. More than half have implemented basic protections like usage policies or staff training.
  • Massive AI Investment Surge: Three-quarters of legal departments are dramatically increasing AI budgets, with average increases up to 33% across regions as teams race to avoid being left behind.
  • Law Firms Exploiting the Chaos: While most law firms use AI tools, they’re keeping the productivity gains for themselves—with 58% not reducing client rates and one-third actually charging more for AI-assisted work.
  • Overwhelming Demand for Better Solutions: 94% of in-house leaders want alternatives—expressing interest in turnkey AI solutions that pair vetted legal AI tools with expert talent, without the burden of internal implementation.

“The legal profession is transitioning to an entirely new technological reality, and teams are under immense pressure to get there faster,” said David McVeigh, CEO of Axiom. “What’s troubling is that most in-house teams are going it alone—they’re not AI experts, they’re mostly using risky general-purpose chatbots, and their law firms are capitalizing on AI without sharing the benefits. This creates both opportunity and urgency for legal departments to find better alternatives.”

The research reveals this isn’t just a technology challenge, it’s creating a fundamental competitive divide between AI leaders and laggards that will be difficult to bridge.

“Legal leaders face a catch-22,” said C.J. Saretto, Chief Technology Officer at Axiom. “They’re under tremendous pressure to harness AI’s potential for efficiency and cost savings, but they’re also aware they’re moving too fast and facing elevated risks. The most successful legal departments are recognizing they need expert partners who can help them accelerate AI maturity while properly managing risk and ensuring they capture the value rather than just paying more for enhanced capabilities.”

Axiom’s full AI maturity study is available at https://www.axiomlaw.com/resources/articles/2025-legal-ai-report. For more information or to talk to an Axiom representative, visit https://www.axiomlaw.com. For more information about Axiom, please visit our website, hear from our experts on the Inside Axiom blog, network with us on LinkedIn, and subscribe to our YouTube channel.

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About InsightDynamo

InsightDynamo is a high-touch, full-service, flexible market research and business consulting firm that delivers custom intelligence programs tailored to your industry, culture, and one-of-a-kind challenges. Learn more (literally) at https://insightdynamo.com.

About Axiom

Axiom invented the alternative legal services industry 25 years ago and now serves more than 3,500 legal departments globally, including 75% of the Fortune 100, who place their trust in Axiom, with 95% client satisfaction. Axiom gives small, mid-market, and enterprise clients a single trusted provider who can deliver a full spectrum of legal solutions and services across more than a dozen practice areas and all major industries at rates up to 50% less than national law firms. To learn how Axiom can help your legal departments do more for less, visit axiomlaw.com.

SOURCE Axiom Global Inc.



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Santos Dumont, LNCC supercomputer, receives fourfold upgrade as the first step in the Brazilian Artificial Intelligence Plan

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The upgraded supercomputer, built by Eviden and based on leading technologies from NVIDIA, Intel and AMD, is the step towards transforming it into one of the largest supercomputer in the world

Brazil – July 9, 2025

Built by Eviden (Atos Group), a technology leader for sustainable advanced computing and AI infrastructures, and integrating NVIDIA Enterprise technology, a pioneer in accelerated computing and artificial intelligence, this upgrade of the supercomputer is part of the Federal Government’s first investment step towards the Brazilian Artificial Intelligence Plan. The Brazilian Artificial Intelligence Plan (PBIA) 2024-2028, launched during the 5th National Conference on Science, Technology and Innovation, has a planned investment of R$23 billion over four years to transform Brazil into a world reference in innovation and efficiency in the use of AI.

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