Introduction
Shopify, one of the world's leading e-commerce platforms, has announced remarkable AI-driven results during its third-quarter 2024 earnings call. Traffic from AI-powered tools to online stores hosted on the platform has increased seven-fold compared to January 2024, while purchases attributed to AI-powered search have grown eleven-fold during the same period. These figures demonstrate how AI is rapidly becoming a strategic channel for digital commerce.
Strategic partnerships and AI-first vision
Shopify recently formed a partnership with OpenAI, the company behind ChatGPT, in September 2024. This collaboration is part of a broader strategy that positions artificial intelligence not as a simple add-on feature, but as a central element of the platform's technological infrastructure. According to Harley Finkelstein, Shopify's president, the company describes AI as "the biggest shift in technology since the internet" and an "incredible tool" to enable more entrepreneurs.
Beyond ChatGPT, Shopify is working with Perplexity and Microsoft Copilot to develop shopping experiences integrated directly into conversations with AI assistants. A recent survey conducted by Shopify revealed that 64% of shoppers are "likely" to use artificial intelligence to some extent during their purchasing process.
AI growth metrics in e-commerce
The data presented by Shopify during the third-quarter earnings conference call is significant. Traffic from AI tools has increased 7x (700%) compared to January 2024, while orders generated through AI-powered search have grown 11x (1100%) during the same period. These increases demonstrate accelerated consumer adoption of new ways to discover and purchase products through conversational agents.
Shopify's competitive advantage in this scenario stems from its ability to access data from millions of merchants and billions of transactions, combined with a "founder mode" mentality that enables rapid product releases to market.
Scout and internal AI-powered tools
Shopify also leverages artificial intelligence internally. Scout is an AI tool that helps company employees search through hundreds of millions of pieces of merchant feedback to make better, more informed product decisions. This represents just one of many tools Shopify is developing to transform its internal signals, including support tickets, usage data, reviews, social interactions, and Sidekick prompts, into fast, data-driven decisions.
"AI is not just a feature at Shopify. It is central to our engine that powers everything we build," Finkelstein stated during the investor call.
Agentic commerce: building infrastructure for the future
Shopify is building infrastructure to facilitate the integration of shopping into every AI conversation. The stated goal is to "lay the rails for agentic commerce," a model where AI agents mediate and facilitate commercial transactions on behalf of users. Finkelstein emphasized that while this is still a very early-stage area, the company is working with industry leaders to ensure that merchants on Shopify are better prepared than those on other platforms.
The company recognizes there will be "different permutations" of how agentic commerce will evolve and is preparing for "whichever path wins." This approach mirrors the emergence of social commerce or the understanding that it's not e-commerce versus physical commerce, but rather "commerce everywhere."
Third-quarter financial results
Alongside AI-related achievements, Shopify reported solid financial results for the third quarter of 2024. Revenue increased 32% to reach $2.84 billion, exceeding analyst estimates. Net profit was $264 million, equivalent to 20 cents per share. However, the stock declined after operating income of $434 million fell short of estimates of $437 million.
Conclusion
The data presented by Shopify demonstrates that artificial intelligence is rapidly becoming a significant channel for traffic and conversions in e-commerce. With 700% growth in traffic and 1100% growth in AI-generated orders in less than a year, the platform positions itself at the forefront of integrating digital commerce with conversational agents. While the agentic commerce ecosystem is still in its early stages, Shopify is investing heavily to build the necessary infrastructure and ensure its merchants have a competitive advantage in the AI era.
FAQ
How much has AI traffic grown on Shopify in 2024?
Traffic from AI tools to Shopify stores has increased 7x (700%) compared to January 2024, according to data presented by the company during its third-quarter earnings call.
What does agentic commerce mean for Shopify?
Agentic commerce refers to a model where AI agents mediate and facilitate commercial transactions on behalf of users, integrating shopping directly into conversations with intelligent assistants like ChatGPT, Perplexity, and Microsoft Copilot.
Which AI platforms is Shopify partnering with?
Shopify has formed partnerships with OpenAI (ChatGPT), Perplexity, and Microsoft Copilot to develop shopping experiences integrated into AI conversations, making it easier for merchants to reach customers through these emerging channels.
How many consumers are willing to use AI for shopping?
According to a survey conducted by Shopify, 64% of shoppers stated they are "likely" to use artificial intelligence to some extent during their purchasing process.
How does Shopify use AI internally?
Shopify uses Scout, an internal AI tool that helps employees search through hundreds of millions of pieces of merchant feedback to make better product decisions, transforming support tickets, usage data, and reviews into operational insights.
What were Shopify's financial results in Q3 2024?
Shopify reported revenue of $2.84 billion (+32% year-over-year) and net profit of $264 million (20 cents per share), exceeding analyst estimates for revenue but falling slightly short on operating income.