Shopify Expands AI-Powered Features To Boost Revenue Growth: Report

Shopify Inc SHOP has reportedly expanded the availability of its AI-powered tools, including the Sidekick assistant and an image-generation feature, to more users.

The initiative aims to enhance the appeal of Shopify’s e-commerce platform and drive revenue growth. Customers can now use the image-editing tool on their smartphones for promotional materials, previously limited to online product images, reported Reuters.

Shopify has also broadened access to Sidekick, its chatbot designed to assist merchants with various queries, including insights on customer behavior, the report added. Initially tested with over 2,000 users last year, Sidekick is now available to a wider audience.

Additionally, Shopify has implemented more than 150 updates to create a more integrated platform, enabling merchants to have a unified experience in scaling their businesses.

Also Read: Target And Shopify Team Up: New Merchants And Products Coming To Target Plus

Shopify recently announced increased marketing investments after predicting its slowest quarterly revenue growth in two years, which caused its stock to drop to a six-month low, erasing C$25.25 billion in market value.

The company's growth surged during the pandemic but has faced challenges due to high inflation and uncertain consumer spending affecting its primary user base of small- and medium-sized businesses.

Shopify clocked fiscal first-quarter 2024 revenue growth of 23% year-over-year to $1.86 billion. The company expects second-quarter revenue growth of high-teens percentage rate on a Y/Y basis.

The report also cited analysts at J.P. Morgan, who noted, “SHOP’s R&D investment dwarfs peers’, culminating in an unrivaled array of features and capabilities that keep the company on the cutting edge.”

They added that Shopify has only penetrated 11% of its total serviceable market, valued at $60 billion.

Price Action: SHOP shares are trading lower by 1.25% at $64.22 at last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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