Shopify Expands AI Features to Attract More Businesses

On Monday, Shopify expanded its artificial intelligence-powered Sidekick assistance and image-generation feature to attract more users and boost revenue

The Canada-based company announced at its biannual products event that customers can now utilize its editing tool on their devices to improve the quality of images used in promotional materials, such as emails.

Previously, the capability was limited to the modification of product images that were posted online.

Shopify also increased the number of users accessing Sidekick, its chatbot that assists merchants with inquiries, including insights into consumer behavior. Sidekick has been in testing with over 2,000 users since last year.

Harley Finkelstein, President of Shopify, stated that the company has implemented more than 150 updates to facilitate the platform’s integration, allowing merchants to scale their businesses in a seamless and unified manner.

After forecasting its weakest quarterly revenue growth in two years, the company announced last month that it would allocate resources to marketing. This announcement resulted in a six-month low in the company’s stock price and a loss of C$25.25 billion in market value on the same day.

Shopify’s growth experienced a surge during the pandemic, as consumers were compelled to transition to online shopping due to the stay-at-home orders.

However, in recent years, the company’s primary user base of small- and medium-sized businesses has been negatively impacted by high inflation and dubious consumer spending.

Its market capitalization has decreased by over 50% from its zenith in November 2021 to C$112.67 billion ($82.22 billion).
Nevertheless, confident analysts perceive the recent decline as a purchasing opportunity.

J.P. Morgan analysts stated that SHOP’s R&D investment is significantly more significant than its rivals, resulting in an unparalleled set of features and capabilities that maintain its position at the forefront.

They also noted that the company has only reached 11% of its total serviceable market, valued at $60 billion.