While Everyone Is Hiring Talent, 7- Eleven is Hiring AI

7-Eleven, a global leader in the convenience store industry, has been making significant strides in artificial intelligence (AI) and data science. This aggressive hiring strategy of AI is part of a broader initiative to leverage advanced technologies to streamline operations, enhance customer experiences, and maintain a competitive edge in the rapidly evolving retail landscape. This article delves into the reasons behind 7-Eleven’s focus on AI and data science, the specific initiatives they are working on, including generative AI, and the key leaders driving these efforts.

Joe DePinto, CEO of 7-Eleven, vision and desire is to become a digitally-enabled organization and make it a strategic pillar that is fully supported, along with the endorsement of a full stack transformation.

Why 7-Eleven is Investing in AI and Data Science

The retail sector is undergoing a digital transformation, with AI and data science playing pivotal roles in reshaping business operations. For 7-Eleven, the adoption of these technologies is driven by several key factors:

Operational Efficiency: AI and data science enable 7-Eleven to optimize various aspects of its operations, from inventory management to supply chain logistics. By analyzing vast amounts of data, the company can make more informed decisions, reduce waste, and improve overall efficiency.

Enhanced Customer Experience: Understanding customer preferences and behaviors is crucial for providing personalized experiences. AI algorithms can analyze transaction data, social media trends, and other sources to predict customer needs and tailor offerings accordingly.

Competitive Advantage: In a highly competitive market, staying ahead requires continuous innovation. By investing in AI and data science, 7-Eleven can develop new products and services faster and more accurately, giving it a significant edge over competitors.

AI and Data Science Initiatives at 7-Eleven

7-Eleven has embarked on several initiatives to harness the power of AI and data science. These initiatives span various aspects of the business, from product development to customer engagement.

Product Development with Generative AI

Product creation with generative AI is one of the most prominent projects. A cloud-based IT system using generative AI from OpenAI, Stability AI, and Google has been deployed by 7-Eleven Japan. In order to determine consumer trends and produce ideas for new items, this system gathers and analyzes data from social media, product producers, and customer sales. The text and image-rich AI-generated ideas drastically cut down on the amount of time needed for product planning—up to 90%. Approximately one thousand managers at Seven-Eleven are now using this technology. By spring 2024, the business hopes to have the system available to employees who work in product development and marketing.

Computer Vision for Cashierless Checkouts

• According to Shahmeer Mirza, Sr. Director of Data, AI/ML and R&D , 7-Eleven wanted to establish a cashierless system where consumers could just take things and leave. This meant solving problems related to data aggregation. They established a cashierless store for staff members close to their Irving, California headquarters in 2019, setting the stage for future expansion. They put in 360-degree cameras to get visual data, and they employed segmentation masks on different backdrops to increase the performance of their computer vision model by ninety percent. Synthetic data also aided in the modelling of shopper movements, enabling the identification of the consumer and the things they selected. “We’re now looking at leveraging this across our range of computer vision systems, as it was a huge improvement,” Mirza said.

• 7-Eleven Australia is deploying computer vision technology in partnership with Grabango to enable cashierless checkouts. “Retailers like 7-Eleven are upgrading stores to provide checkout-free options as consumers demand the time savings it gives them,” stated Grabango CEO Will Glaser. This system uses overhead cameras and machine learning algorithms to track products as customers shop, eliminating the need for scanning at checkout. The technology is set to be implemented in 10 stores initially, with plans for broader rollout. 

“Our technology ambition is all about making our customers’ lives easier by providing products and services when, where, and how they want them.” stated Stephen Eyears, General Manager of Technology and Strategy at 7-Eleven Australia.

AI-Driven Customer Service

With the help of a mobile app, 7-Eleven has launched an AI FC feature that lets staff members and store managers get prompt responses to questions on how the business is run. The goal of this AI-powered solution is to increase operational efficiency and streamline retail administration. With the use of the AI FC function, shop staff may instantly communicate with the management system and receive real-time answers to operational queries. This AI technology, which is expected to be fully operational by the second quarter of this year, is intended to improve overall efficiency by streamlining store management procedures and lightening the workload of store employees.

Customers are able to engage in live conversations with an AI clerk at Korea’s first unmanned 7-Eleven convenience store located inside the Lotte Information and Communication building in Seoul. Installed in 2021 by DeepBrain AI, a provider of real-time conversational AI, the AI Kiosk incorporated DeepBrain AI’s human technology and additional technologies for unmanned convenience stores. The AI Clerk provided promotional information, including discounts, newly stocked items, and background on the company. Eric Jang, founder and CEO of DeepBrain AI, stated, “We believe AI humans embedded with video and speech synthesis technology will disrupt many industries, including convenience stores. We’re excited to demonstrate this 7-Eleven commercial solution, which is currently in use, to highlight AI’s ability to humanize digital customer service and enhance customer experiences.”

7MD

The 7MD device, developed by 7-Eleven, is a mobile, handheld point-of-sale (POS) system that significantly enhances store operations through technology and AI. This device allows store associates to move freely around the store, performing various tasks such as scanning items, checking out customers, and managing inventory. By integrating these capabilities into a single mobile device, 7MD streamlines the checkout process, reduces wait times, and improves overall efficiency. Additionally, it supports functions like lottery management and other store-related tasks, making it a versatile tool for store associates. The deployment of 7MD is part of 7-Eleven’s broader strategy to leverage technology to enhance convenience and operational efficiency in its stores.

 “One of the things we did back in 2017 is to assemble a world-class digital and Technology team in-house because at that point in time to get to the pace of delivery of things that we wanted to do for our customers it required a certain level of attention in-house and that’s what we picked and right now we have a good balance of what we do in-house versus where we leverage help so it’s a good combination that keeps us at the pace at which we want to be.” said Raghu Mahadevan, Executive Vice President & Chief Digital Officer at 7-Eleven

Data Analytics for Promotions and Insights

7-Eleven has brought key promotions insights in-house using data analytics platforms like Alteryx. 7-Eleven has a lot of data at its disposal because it has about 70,000 locations in 17 countries, including over 8,600 in the United States alone. The difficulty, though, is in efficiently obtaining, combining, and using this data. The integration of Big Data and cloud technologies, together with a shift towards data-driven decision-making, are critical components of 7-Eleven’s strategy, according to Srikanth Nayani, Former director of digital analytics and verification. The firm wants to take convenience and technology together by using data to create customized items and promotions for customers. In order to provide more informed and flexible decision-making processes, 7-Eleven is working to improve analytical skills across all departments, from marketing to finance, and expedite operations by overcoming obstacles including inconsistent data sources and delayed vendor insights.

SAP Business AI Integration

In a recent development, 7-Eleven has partnered with SAP to leverage its Business AI capabilities. 7-Eleven recognized the need to innovate and digitize the ordering process for their store managers, who previously relied on paper forms and back-office computers to update orders in SAP ECC. By partnering with Bourne Digital, they developed the StoreMate app, providing store managers with mobile access to key functions like ordering, inventory management, and reporting. This mobile-optimized solution allows managers to spend more time on the shop floor, enhancing customer engagement and coaching their teams. The result is a more efficient and flexible process, saving an estimated 100,000 hours annually across 700 stores, reducing merchandise waste, and increasing customer focus.

“Having these devices available in stores not only enables use of StoreMate, it also gives us the opportunity to integrate and deploy other digitally-enabled tools including digital food safety and store task roadmaps in addition to providing a more real time and interactive communication platform to stores through virtual training, meetings and events.” Alex Day, Product Owner at 7-Eleven Australia

Advertising with AI-Powered Metrics

7-Eleven Japan uses AI to monitor how customers engage with in-store advertisements. Installing an edge AI solution from Sony Semiconductor Solutions (SSS) at 500 sites, the system gathers information on how many customers visit, how they interact with the signs, and how long they stay on it—all while maintaining privacy by not taking pictures of recognisable people. Eita Yanagisawa, the Senior General Manager of the System Solutions Business Division at SSS said, “7-Eleven uses the IMX500 and AITRIOS-based solution to understand the number of shoppers who view the in-store content and advertisements. This data could then be used by a back-end system to visualize patterns or purchasing behaviors of the customers who viewed the content, and how their purchase might be affected by the advertisement. The sensor is the world’s first intelligent vision sensor with AI-processing capability.”

To assess the efficacy of the ads, this data is then merged with information on content streaming and purchases. Compact edge devices with IMX500 vision sensors for AI processing are part of the solution, which also lowers installation costs and simplifies maintenance.

First Self Checkout Station 

The new self-checkout 7-Eleven location near the Esplanade MRT station in Singapore makes creative use of AI technology. By identifying things that are picked up and taken out of the store, smart cameras, deep learning, and multi-sensor fusion technologies may track the purchases made by customers. Rather than using traditional scanning, the automatic checkout system charges clients’ credit cards as they leave. Through the use of credit card taps, AI tracks consumer movements from entry to exit, managing access and exit through barrier gantries. The technology probably helps with real-time inventory control and study of consumer purchasing patterns, which improves product selection and store design. AI also improves security by having the ability to identify possible theft. In response to labour shortages and to cut operating expenses, 7-Eleven is preparing a six-month trial of an unmanned shop idea to get input before considering possible expansion.

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Using AI for Hiring

7-Eleven has revolutionized its hiring process by implementing Rita, a conversational AI assistant developed by Paradox. This innovative technology has dramatically reduced the time it takes to hire new employees from 10 days to less than 3 days. Rita handles various aspects of the recruitment process, including candidate communication, initial screening, and interview scheduling. By automating these tasks, the AI assistant has freed up a significant amount of time for store leaders – approximately 40,000 hours per week across the organization. This allows managers to focus more on critical store operations and customer service. The implementation of Rita demonstrates 7-Eleven’s commitment to leveraging AI technology not just in customer-facing operations, but also in streamlining internal processes to improve overall efficiency and productivity.

“We needed to change something fast in order to stay competitive.” said Rachel Allen, senior director of TA at 7-Eleven.

GSC In Bangalore

At 7-Eleven’s Global Solution Centre (GSC) in Bengaluru, the team is actively leveraging AI and machine learning technologies to drive retail innovation and digital transformation. They are developing and implementing advanced AI-driven solutions such as Ordering AI for optimizing supply chain operations, a scheduling AI framework to efficiently allocate labor hours, and personalized machine learning models to enhance customer experiences through tailored offers. These efforts are not only streamlining operations and improving efficiency but are also positioning 7-Eleven at the forefront of retail technology, ensuring the company stays ahead in the competitive retail landscape. The GSC is fostering a collaborative and innovative work environment, where employees are empowered to utilize cutting-edge tools and platforms to address evolving customer demands and revolutionize the retail industry.

“One of our leadership values is customer obsession. I am dedicated to leading the GSC and following our mission to act as a trusted resource for 7-Eleven, providing capability and dedicated expertise to deliver high-quality, innovative services,” said Jennifer Goschke, VP & Country Leader, Global Solution Center – India at 7-Eleven in an exclusive interview with AIM. 

Throughout the company, 7-Eleven’s strategic investment in data science and artificial intelligence has produced outstanding outcomes. The deployment of AI infrastructure has resulted in a significant reduction in internal meetings by 80% and a 90% decrease in the time required for product planning. Promotion and insight efficiency have increased by 60%, signalling a significant improvement in marketing activities. Beyond these internal upgrades, technology has greatly improved the shopping experience for customers by personalising offers and streamlining the process of making purchases.  The firm is raising the bar for operational effectiveness and customer-focused service in the retail industry as it continues to use these technologies.