Shopify, the Canadian e-commerce software giant and a major technology provider to Australian retailers, says artificial intelligence-driven search is rapidly changing how consumers find and purchase products online, with local merchants set to benefit from a new push into so-called “agentic commerce.”

The company, which supports up to 1,500 Australian retailers including JB Hi-Fi and Bing Lee, told analysts this week that orders generated through AI-driven search are up approximately 15 times year-on-year, albeit from a small base.

Shopify President Harley Finkelstein said the growth signals a structural shift in online discovery, positioning 2025 as the year the company “laid the rails” for AI commerce and 2026 as the year it expects to scale the technology more broadly.

For Australian retailers seeking to grow direct-to-consumer sales and compete more aggressively with suppliers and marketplaces, Shopify’s strategy centres on integrating their product catalogues directly into AI platforms.

At the core of the company’s expansion is the Universal Commerce Protocol (UCP), co-developed with Google, which is designed to standardise how AI agents transact online. Through Shopify’s “Agentic Storefronts”, merchant catalogues are syndicated to major AI services including Google’s Gemini, OpenAI’s ChatGPT and Microsoft Copilot, allowing consumers to discover and potentially purchase products directly through AI interfaces.Shopify (Image: Sourced from Unsplash)

The reach extends beyond Shopify’s own merchants through its Agentic plan, broadening access to sellers outside its core platform.

Finkelstein said that as AI-generated transactions increase, Shopify captures more gross merchandise value (GMV)-linked revenue, aligning the company’s growth directly with merchant sales performance.

As of December 31, 2025, Shopify reported millions of merchants across more than 175 countries using its platform. Approximately 16 per cent of its merchant base is located in Asia-Pacific and Australia, underscoring the region’s growing importance to the company’s international expansion strategy.

Chief Financial Officer Jeff Hoffmeister told analysts the company expects revenue growth in the “low 30 per cent” range this year, matching the pace delivered in the fourth quarter. Payments remain the largest driver of growth, with Shop Pay continuing to gain market share.

Hoffmeister said growth from existing merchants remains steady, while Shopify continues to add new sellers “of all sizes across all channels,” including in Australia.

The company is also expanding its consumer-facing strategy through its Shop App, a marketplace-style platform aimed at increasing shopper engagement and personalisation. The app allows users to browse merchants, track orders and purchase from Shopify-powered stores.

Finkelstein said the app will increasingly promote “curated drops” and exclusive offers tailored to individual interests, designed to capture both active shoppers and consumers who are “casually scrolling.”

While the United States remains Shopify’s largest market, with regional revenue up 28 per cent and accounting for 14 per cent of its e-commerce business, international growth is accelerating at a faster pace. International revenue rose 36 per cent year-on-year, including growth in Australia, with more than half of Shopify’s merchant base now located outside the US.

For Australian retailers navigating intensifying digital competition and shifting consumer behaviour, Shopify’s push into AI-powered commerce signals a new battleground — one where search results may increasingly be shaped by algorithms acting on behalf of consumers rather than traditional web browsing.