Shopify is absolutely scorching the earth in the AI space right now. So far since January, it has seen a seven times increase in AI-driven traffic, but even more notably an eleven times increase in AI driven orders. Much of the company’s success has stemmed from its unrivaled access to data. It’s powered by learnings from millions of merchants and billions of transactions. This places Shopify firmly in the driver’s seat of a commerce world that is increasingly more complex.
The company’s controversial internal culture, famously known for its “founder mode” mentality, has been focused on the speed of product innovation. This strategy serves to further position Shopify to quickly look out ahead of the unpredictable environmental terrain and maximize all the opportunities AI has to offer. Harley Fekelstein, President of Shopify, shared how important the company’s vision is for creating meaningful relationships through AI agents. He’s getting ready for all that could come in agentic commerce.
Finkelstein noted that Shopify needs to be prepared for whichever way agentic commerce goes. “What we’re really trying to do is lay the rails for agentic commerce,” he stated, underlining the company’s forward-thinking strategy. In fact, based on a recent survey from Shopify, 64% of shoppers are already using or are “very likely” to use AI when making purchase decisions. The company has realized that AI is much more than a flashy extra; it’s the new operational backbone of its business.
Shopify supercharges data-informed decision-making with its internal tool, Scout. This AI-driven tool shows merchants where to prioritize their efforts by quickly analyzing hundreds of millions of merchant feedback pieces. Finkelstein elaborated on this innovation, saying, “Scout is just one of many tools we’re developing to turn our own signals, whether it’s support tickets, usage data, reviews, social interactions, or even Sidekick prompts, into fast, informed decisions.” This internal infrastructure gives Shopify the ability to iterate on its product offerings in real-time based on new data and trends.
Despite this strong progress, Shopify found itself in a tough spot after their last earnings report. The company reported an operating income of $434 million, just below the Street’s $437 million estimate. Consequently, Shopify’s stock took a deep dive in reaction to the announcement. For analysts and investors, this means closely monitoring how Shopify addresses these challenges while staying ahead of the curve with AI gamechangers.
Finkelstein’s insights during this time reinforce the company’s commitment to helping merchants thrive in an increasingly competitive environment. “The fact that we’re already working with the leaders in the space should, I think, be a testament to the fact that we want to make sure merchants on Shopify are better prepared than those that are not,” he explained.