Tech

Shopify launched a new AI-powered assistant to help merchants as its support staff remains under a 'Code Yellow' for 'deteriorated' performance

Tobi Lutke shopify
Shopify CEO Tobi Lütke. Lucas Jackson/Reuters
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Shopify launched a beta version of an AI-powered assistant for its help center, the webpage where merchants can go to get answers to questions about running their business. The tool appears to handle some tasks that Shopify's customer-support staff have traditionally handled. 

The help-center assistant chatbot can provide answers to questions about getting started on Shopify, managing inventory, setting up Shopify Payments, and other topics. It pulls from resources available in the help center in order to provide answers, and it directs users to directly contact Shopify's support staff if the issue is not adequately addressed.  

Shopify Help Center assistant helps set up a Shopify store
An example of an interaction with Shopify's Help Center assistant.  Shopify Help Center

The beta launch follows CEO Tobi Lütke's July 12 announcement of Sidekick, an AI assistant built into the Shopify admin, which also handles some tasks typically assigned to support agents. 

An internal presentation given by Shopify leadership earlier this month indicated that the company plans to continue to lean on AI for support tasks as part of an ongoing transformation plan it calls "Code Yellow." Shopify executives declared a "Code Yellow" in March, saying that the team needed to improve customer-service levels "that have deteriorated beyond acceptable ranges." The Support org is now entering the second phase of that plan after seeing strong results in the first phase, according to the presentation. 

A Shopify spokesperson did not immediately return Insider's request for comment. 

In June, Shopify began asking some support staff to test a translation bot powered by OpenAI's technology. Its support staff already had the ability to use AI-generated template email responses to merchant inquiries. The tool scans existing documents and articles to generate answers to merchants' questions. 

Shopify has been testing new ways of using AI in other areas of its business as well. In March, the company launched a ChatGPT-powered shopping plugin for its Shop app. The bot can recommend products sold by Shopify merchants based on shoppers' answers to a series of questions. It also recently launched a tool called Shopify Magic, which uses generative AI to write product descriptions. 

"We believe that we are in the early innings of unlocking the true power of AI, not only for our merchants and their customers but also for Shopify," Harley Finkelstein, Shopify's president, said during its first-quarter earnings call in May. 

In his note about the company's layoffs in May, in which 20% of its workforce was let go, Lütke wrote that the tech industry is now "at the dawn of the AI era." 

"Shopify has the privilege of being amongst the companies with the best chances of using AI to help our customers," he wrote.

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Madeline was a correspondent covering e-commerce companies including Shopify, Amazon, Temu, and Shein. She also wrote about e-commerce startups and online seller communities. She previously edited stories for the retail section. Before that, she wrote for the executive lifestyle and tech verticals, where she reported on luxury real estate, restaurants, and travel. She graduated from the University of Notre Dame with majors in American Studies and Spanish. She is based in the Northeast.Have a tip? Contact Madeline via Signal at mlstone.04. Use a personal email address and a nonwork device; here's our guide to sharing information securely.Read some of her work here:— Wealth Assistants claimed it would help its clients make money on Amazon. Clients said they 'lost everything' instead.— The DTC fraternity: In an industry known for lively events and strong online communities, women say they feel left outBlackface, booze, and blurred lines at the $2 billion tech firm Rokt— Meet 38 members of the 'Shopify Mafia' who embraced the e-commerce giant's entrepreneurial spirit and launched their own companies— Read the essay Shopify's CEO sent to managers to remind them they are a sports team, not a family. It shows the growing tension between leaders and employees in the corporate world.— Ex-Shopify and Deliverr workers say layoffs, compensation issues at Flexport capped a 15-month rollercoaster: 'Honestly a bit relieved that it's over'