Shopify reports AI search is boosting merchant traffic and sales, not replacing traditional search

On its Q2 2026 earnings call, Shopify President Harley Finkelstein said AI is acting as a complement to search, not a substitute, and has particularly benefited smaller merchants. The company reported that AI-driven traffic and orders to Shopify stores tripled year-over-year in the quarter.

Shopify also noted that traditional search remains a dominant and growing source of buyer traffic. Traditional search sessions are up 1.3x over the past two years and account for roughly a third of all storefront sessions. Revenue rose 36% to $3.6 billion in Q2, exceeding Wall Street’s $3.4 billion forecast, while gross operating profit increased 31% to $1.71 billion.

Finkelstein attributed the success of AI search to its ability to understand buyer intent more deeply than keyword-based systems. He described how AI agents can process multiple constraints—such as dimensions, vehicle type, and quantity—when matching products to a buyer’s specific needs. For example, an AI assistant can identify the best car seat that fits three across a sedan, rather than just returning results for the keyword 'car seat.'

The company also reported that half of all AI-referred sessions land directly on product description pages, which is 2.5 times higher than traditional search. Additionally, 75% of AI-attributed purchases in Q2 occurred outside Shopify’s top 100 categories, indicating AI is broadening discovery beyond popular segments.

Shopify highlighted its trusted checkout experience as a further advantage in an AI-driven commerce landscape. The company also mentioned building connectors to AI tools and agents, including Claude, ChatGPT, Perplexity, Manus, Replit, and Vercel, as well as vibe-coding platforms like Lovable, to support merchant flexibility.