E-commerce platform Shopify is reporting a massive increase in consumer activity driven by artificial intelligence, with purchases attributed to AI-powered search tools growing by 11 times since the beginning of the year. This surge is accompanied by a sevenfold increase in traffic to its online stores originating from AI applications.
The company is positioning itself at the forefront of what it calls "agentic commerce," developing infrastructure to integrate shopping directly into AI conversations. This strategy reflects a significant bet on AI as a fundamental shift in how consumers discover and buy products online.
Key Takeaways
- Purchases from AI-powered search on Shopify have increased by 11x since January.
- Traffic from AI tools to Shopify merchants has grown by 7x in the same period.
- Shopify is partnering with major AI players like OpenAI, Perplexity, and Microsoft Copilot.
- The company views AI not as a feature, but as a core component of its entire platform.
- A recent survey indicates 64% of shoppers are likely to use AI for making purchases.
A New Era of Digital Commerce
Shopify's leadership is framing the current technological shift as the most significant since the advent of the internet. During a recent earnings call, company president Harley Finkelstein emphasized that artificial intelligence is becoming central to their operations and future growth.
The dramatic rise in AI-related traffic and sales suggests that consumers are already beginning to use these new tools for shopping. The 11x increase in purchases highlights a growing trend where AI assistants and chatbots are not just answering questions, but actively facilitating commercial transactions.
"If you take away one thing from this call, let it be this: AI is not just a feature at Shopify. It is central to our engine that powers everything we build."
Strategic Partnerships and Infrastructure
To capitalize on this trend, Shopify is actively building connections with leading AI companies. The platform has established partnerships with OpenAI, the creator of ChatGPT, as well as with Perplexity and Microsoft Copilot to enable in-chat shopping experiences.
"We’ve been building and investing in this infrastructure to make it really easy to bring shopping into every single AI conversation," Finkelstein explained. He noted that the goal is to prepare Shopify merchants for this new landscape, which he terms "agentic commerce."
What is Agentic Commerce?
Agentic commerce refers to a future where AI agents or assistants act on behalf of a consumer to find, compare, and purchase goods and services. Instead of manually browsing websites, a user might simply ask their AI to find the best running shoes for their needs, and the agent would handle the rest.
Finkelstein compared the current moment to the early days of social commerce, when it was unclear which platforms would dominate. By building foundational technology, Shopify aims to be ready for "whichever path wins" as AI-driven shopping evolves.
Data as a Competitive Advantage
Shopify believes its primary advantage lies in the vast amount of data it processes. With millions of merchants and billions of transactions, the company has a rich dataset to train and inform its AI models, making them more effective for both merchants and consumers.
This data-centric approach extends to internal operations. The company developed a tool named Scout, which uses AI to analyze hundreds of millions of pieces of merchant feedback from sources like support tickets, reviews, and social media. This allows Shopify to make faster, more informed decisions about its own product development.
A recent Shopify survey found that 64% of shoppers said they are "likely" to use AI to some extent when making purchasing decisions, indicating a strong consumer appetite for these new tools.
"Scout is just one of many tools we’re developing to turn our own signals... into fast, informed decisions," Finkelstein stated, highlighting how AI is being integrated across the entire company.
Financial Health and Market Outlook
The company's focus on AI is backed by strong financial performance. In its third-quarter results, Shopify reported a 32% increase in revenue to $2.84 billion, surpassing market estimates. The company also posted a profit of $264 million.
Despite the positive revenue growth, the company's stock experienced a slight dip after the announcement. This was attributed to its operating income of $434 million narrowly missing analyst projections of $437 million.
However, the long-term strategy remains firmly fixed on AI. Finkelstein acknowledged that the transition is still in its early stages but stressed the importance of laying the groundwork now. "What we’re really trying to do is lay the rails for agentic commerce," he concluded.