Shopify, one of the main providers of software and services for sellers who carry out their activities in the virtual space, considers artificial intelligence as a tool for providing competitive advantages to those who interact with this company.
The use of AI in the commercial plane is gradually becoming a global process and a general trend since advanced technology makes it possible to simplify many processes and at the same time increase their quality and speed of execution. The introduction of artificial intelligence in e-commerce, according to many experts, is what can be described as an inevitability, but in this case, the imminence does not have a negative meaning. Those who ignore the technological transformation of this sphere will not be able to fully develop the business, because they will not withstand competition in the space of actively applying machine intelligence. Understanding the technological trends of the present, Shopify strives to use AI as an advantage for sellers, allowing them to strengthen and reinforce their market positions.
For investors of the mentioned company in the context of the issue of applying artificial intelligence, the main interest is the prospects for revenue dynamics and business growth.
Shopify CFO Jeff Hoffmeister, in a symbolic sense, described machine intelligence tools as a kind of superpower for sellers. These tools help you make important decisions that relate to changes in the product line and geographical expansion. The company’s main artificial intelligence-based offering is Shopify Magic, which was announced in July. In this case, there is not one tool, but a set of solutions.
Shopify offers sellers to use AI as a virtual assistant to create text materials describing products. The company has also developed an artificial intelligence application script to generate publications posted on blogs. Another Shopify solution for using machine intelligence is a tool for creating emails sent to consumers.
The company has also developed an AI app called Sidekick. This solution helps sellers to carry out competent inventory management of goods. Also, in this case, the AI is a virtual assistant that provides tips about marketing activities.
Shopify predicts that by the end of this year, the sales volumes of its trading products will decrease compared to the indicators of 2022. At the same time, the company expects that artificial intelligence tools will be in demand among large customers. The long-term strategy of the brand provides for increased interaction with sellers whose activities have a scale above average and who are willing to pay more for the services provided.
Some analysts disagree with enthusiasm about the prospects of using machine intelligence in the commercial space. In their opinion, the probability that sellers faced with the problem of slowing consumer demand will apply artificial intelligence tools is zero and generally unrealistic. But in this case, it should not be forgotten that a positive example encourages the repetition of actions that make it possible to achieve the goal. In the example of Shopify, this kind of law means that artificial intelligence tools will be successfully monetized if the experience of using them indicates an increase in the level of productivity.
Amazon and Walmart have already applied machine intelligence technologies to attract third-party sellers to its platforms. These giants of commerce use artificial intelligence tools not only to improve the customer experience but also to ameliorate the mechanisms of merchants’ activities. Amazon Ads has introduced a generative AI solution that helps advertisers increase the effectiveness of marketing campaigns and create more engaging content.
Walmart is currently exploring the possibilities of using artificial intelligence and augmented reality technologies to ensure maximum convenience of shopping. The company also applies AI to create customized search results. Moreover, Walmart sees artificial intelligence as a way to simplify the process of making complex purchasing decisions for customers. AI, taking into account individual preferences and needs, simplifies the solution of this task.
As we have reported earlier, Adyen and Shopify Partner to Strengthen E-Commerce Capabilities for Enterprise Merchants.