
When AI agents do your shopping, everything changes, with Shopify’s Jess Hertz
Hosted by Bob Safian
- 29m
- Transcript
Summary
Written by a model from the transcript; not yet reviewed.
Shopify COO Jess Hertz joins host Bob Safian to discuss navigating macro uncertainty, agentic AI, and scaling an e-commerce giant through rapid market shifts. Hertz explains how Shopify powers over fourteen percent of US e-commerce and details the internal deployment of River, an AI agent living in Slack that has taken millions of actions to accelerate company velocity. The conversation explores the compression of time to first sale for new entrepreneurs, the impact of AI on niche product discovery, and Shopify's strategy around the upcoming era of agentic shopping. Hertz also outlines her philosophy on organizational design, moving from T-shaped to X-shaped talent pools, and maintaining an unsentimental, first-principles culture.
- New businesses can launch and make their first sale remarkably fast, with about ten percent of new shops making a sale within a single day. 2:34
- AI commerce agents reward precision and personalization over mere popularity, driving three-quarters of AI-attributed orders to categories outside the top one hundred. 25:13
- Shopify maintains flat headcount while growing revenue significantly by leveraging internal AI tools that reduce human context transaction costs. 17:18
- Enterprises should keep their identity lightweight and remain unsentimental about past ideas to enable rapid pivoting and continuous learning. 29:15
Chapters
- 0:01Podcast Intro and Advertisements
The episode opens with a brief intro and several promotional spots for LinkedIn Ads, Creative Planning, and Pega, setting the stage for the main interview.
- 2:56Shopify COO Jess Hertz Introduced
Bob Safian introduces Jess Hertz, COO of Shopify, and outlines the episode’s focus on AI agents and trade tensions affecting the company.
- 4:08Trade War Context for Shopify
Jess discusses how the US-Canada trade war impacts Shopify’s operations and the company’s perspective on tariffs and global positioning.
- 13:58Shopify’s AI Infrastructure and Competition
Jess outlines Shopify’s strategy for building a robust AI commerce stack, the importance of complexity as a moat, and how the company stays ahead of big AI platforms.
- 19:48AI’s Role in E‑Commerce Growth
Jess explains how agentic AI, particularly Shopify’s Sidekick, is driving growth, improving conversion, and expanding the platform’s capabilities.
- 20:55Jess’s Unsentimental Leadership Style
Jess reflects on her unsentimental approach, the value of first principles, and how this mindset fuels agility and innovation at Shopify.
- 27:00Managing Merchant Complexity and Retention
Jess details how Shopify serves merchants across the spectrum, from small businesses to large brands, and highlights impressive retention rates for high‑GMV merchants.
- 32:08Closing Remarks and Final Thoughts
Bob wraps up the episode, reiterating key points about AI, trade tensions, and Shopify’s future, while acknowledging Jess’s insights on sentiment and leadership.
Highlights
- 2:22
The guest explains that the barrier to entry for starting a business has dropped significantly due to AI, with about ten percent of new shops making their first sale within a single day.
- 10:28
Internal Slack AI Agent Riverstrategy
The guest describes River, an AI agent operating inside company Slack channels that can read code and run tests, having completed millions of actions across thousands of channels in just five months.
- 18:37
Evolution to X-Shaped Talentinsight
The guest argues that AI is pushing organizations away from traditional T-shaped employees toward X-shaped people who possess multiple spikes of expertise across diverse domains.
- 22:14
Agentic Commerce Conversion Liftdata
The guest shares that buyer conversion rates double when shopping agents use Shopify's catalog data compared to when they rely merely on scraped web data.
- 25:13
AI Rewards Niche Productsinsight
The guest notes that shopping agents favor precision and personalization, with seventy-five percent of AI-attributed orders coming from product categories outside the top one hundred.
- 29:15
Keeping Identity Lightweightinsight
The guest explains the company philosophy of keeping identity lightweight, which encourages employees not to get overly attached to their own ideas so better solutions can win out.
Quotes
“AI is full of possibilities.”
Unnamed speaker · 1:41 “About 10% of new shops made their first sale within a single day of signing up, which is just incredible.”
Unnamed speaker · 2:34 “Think about this is really almost 90% of our quarterly revenue is from merchants who've been on the platform for over a year.”
Unnamed speaker · 12:33 “So you have multiple spikes of expertise, much faster being able to kind of absorb complexity, being able to learn new spaces, being able to, you know, be a seven out of 10 designer, if you want to be, right?”
Unnamed speaker · 18:45
Sponsored segments
- Creative Planning 1:32–1:41
- Pega 1:46–2:02
- Deal 21:30–22:34
- Intuit 33:33–33:45
- Rapid Response 33:52–34:29
About this episode
For decades, e-commerce rewarded the biggest brands who could buy their way to the top of search results. AI is changing that. Shopify COO Jess Hertz joins Rapid Response to share what Shopify's data reveals about the agentic shopping revolution in real time, and how the company is building the infrastructure layer that makes products discoverable and purchasable by AI. Plus, why Shopify's engineers can spend freely on AI tokens while the rest of the business world agonizes over ROI, and what it looks like when a company powering over 14% of online shopping decides to win the future or die trying. Visit the Rapid Response website here: https://www.rapidresponseshow.com/ See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Transcript
5,751 words · 8 speakers
Speaker names marked are inferred from speaking time and the show’s known hosts — they are not voice-verified.
Topics
- Shopify
- River
- Sidekick
- Universal Commerce Protocol
- ChatGPT
- Gemini
- Copilot
Page updated · transcript and summary are machine-generated