**Shopify Inc. (SHOP)** is intensifying its focus on artificial intelligence (AI) with the introduction of Sidekick, a merchant-oriented tool aimed at enhancing productivity on its platform. In the first quarter of 2026, the number of weekly active shops using Sidekick surged fourfold year-over-year, resulting in over 12,000 custom apps being created. Sidekick accounted for nearly 50% of all flows generated by Shopify during this period, while theme edits increased over 1,000% sequentially.
Despite these gains, operating costs associated with AI are a concern. While Shopify’s Subscription Solutions maintained an 80% gross margin in Q1, rising costs related to large language model (LLM) usage are affecting overall profitability. As merchant engagement with Sidekick grows, Shopify aims to integrate AI into daily operations, which could enhance product adoption and deepen reliance on the platform.
In comparison, **Amazon.com, Inc. (AMZN)** reported first-quarter capital expenditures of $43.2 billion primarily focused on scaling its AI infrastructure, highlighting the high costs of AI integration. Meanwhile, **Wix.com Ltd. (WIX)** is similarly embedding AI into its tools for online businesses. Shopify’s distinct opportunity lies in utilizing Sidekick within a comprehensive commerce framework, enabling broader applications across various merchant functions.
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