Shopify (SHOP) Launches New AI Tool for Online Stores

On Wednesday, Shopify (SHOP) launched a new generative AI tool called the “AI Store Builder,” which is designed to make it much easier for merchants to set up their online stores. Instead of building a website from scratch, sellers can now just type in a few keywords that describe their business. Based on those keywords, the tool quickly creates three different store designs that are complete with images and text. This new feature helps merchants save time and effort, especially those who may not have design experience or technical skills.

It is worth noting that Shopify has offered other AI tools and third-party apps in the past to help users build their stores, but the AI Store Builder is the first fully built-in feature that automates the entire website creation process. Vanessa Lee, Shopify’s vice president of product, explained that many merchants find it overwhelming to drag and drop elements or fill in detailed forms. Instead, this tool asks open-ended questions and uses AI to design a store that closely matches the seller’s needs and preferences.

Shopify has been putting a lot of focus on artificial intelligence in order to bring more merchants to its platform. The company already offers AI-powered tools for things like creating product images and managing inventory. However, with the launch of the AI Store Builder, Shopify is making it even easier for people to launch an online business, no matter their background or experience. This move is part of Shopify’s broader strategy to simplify e-commerce and stay competitive in a fast-growing digital market.

Is SHOP a Good Stock to Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on SHOP stock based on 26 Buys, 11 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SHOP price target of $113.97 per share implies 10.5% upside potential.

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