Shopify needs to demonstrate to investors that its AI products will spur growth when it publishes results, only one week after the e-commerce behemoth Amazon announced that it is providing new generative AI advertising capabilities to its merchants this holiday season.
According to projections from the London Stock Exchange Group (LSEG), Wall Street projects a 22.38 percent increase in sales to US $1.67 billion over the previous year.
Shopify’s Chief Financial Officer, Jeff Hoffmeister, said during a September conference that the company’s AI technology will be a “superpower” for sellers who need help choosing their product mix and where to expand.
Shopify provides software and services to online shops. It also provides merchants with apps that enable them to sell directly on websites like Amazon and Walmart, which are also creating AI capabilities specifically for stores.
The company launched Shopify Magic in July, a suite of AI-powered product descriptions, virtual assistants, blog posting, and email campaign tools for merchants, following the completion of the spinoff of its logistics operation in May. As part of its AI suite, Shopify released Sidekick to help merchants make decisions about marketing, promotions, and inventory while lowering their dependency on third-party widgets.
Sales of Shopify’s merchant products, which include Shopify Magic, are expected to increase by 21% to US $ 1.2 billion in comparison to the prior year, according to analysts, which would be the company’s first quarterly decrease.
