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Shopify Merchants Look to AI for Enhanced Sales Decision-Making

Updated: Dec 18, 2023

Shopify, the e-commerce platform, is witnessing its merchants turn to artificial intelligence (AI) tools to drive key sales decisions.


As the company prepares to release its quarterly results, investors are eager to see the impact of Shopify's AI products on its growth.

Chief Financial Officer Jeff Hoffmeister has expressed confidence in the potential of AI tools to empower sellers in selecting their product mix and expanding geographically.

Shopify offers software and services to online sellers, including apps that enable merchants to sell on marketplaces like Amazon and Walmart. In a bid to attract more merchants, Shopify introduced Shopify Magic, a suite of AI-powered tools such as product descriptions, virtual assistants, blog posting and email campaigns.

One of the tools, AI app Sidekick, assists sellers in making inventory, promotion and marketing decisions, reducing their reliance on third-party widgets.

Analysts predict a 21% increase in sales of Shopify's merchant products, including Shopify Magic, compared to last year. This growth is part of Shopify's strategy to attract larger merchants who are willing to pay higher prices for its services. However, some analysts believe that the adoption of generative AI may face challenges, as merchants grappling with slowing demand may be less inclined to experiment with new technologies.

Shopify's long-term goal is to gain more enterprise customers, similar to Meta and Hunter and increase sales volumes for its loan, payment and point-of-sale tools. While the immediate impact of AI tools on attracting larger clients may be limited, Shopify aims to demonstrate the productivity enhancements associated with AI to monetise its offerings effectively.

  • Shopify merchants are turning to AI tools for making key sales decisions.

  • The company's AI suite, Shopify Magic, offers a range of AI-powered tools for merchants.

  • Shopify aims to attract larger merchants who will pay higher prices for its services.

  • The adoption of generative AI may face challenges due to slowing demand.


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