When AI agents do your shopping, everything changes, with Shopify’s Jess Hertz
Tuesday, 1 September 2026 · 1 min read · Listen to the episode ↗
In this episode, Jess Hertz from Shopify explores how AI is revolutionizing entrepreneurship by streamlining the shopping experience and enabling rapid business launches. She highlights the success of River, an AI tool that has significantly reduced transaction costs and improved operational efficiency. Hertz also discusses the shift towards a merchant-centric approach and the evolving employee profile needed to navigate the complexities of modern commerce, emphasizing Shopify's commitment to supporting entrepreneurs in a dynamic market.
Jess Hertz discusses the transformative impact of AI on entrepreneurship, particularly how it has lowered barriers for starting businesses and accelerated the process of making sales. Approximately 10 percent of new shops on Shopify achieve their first sale within a day of signing up, showcasing the platform's efficiency in facilitating quick startups.
As COO, Hertz implemented a new sales team compensation plan that prioritizes merchant outcomes, reflecting a strategic shift towards a more merchant-centric approach. She emphasizes the importance of balancing chaos and order within Shopify, suggesting that this dynamic is essential for the company's success.
Hertz introduces River, an AI tool that has completed 275,000 sessions and executed 15 million actions in just five months. River's capabilities include reading public channels and reducing transaction costs, which are integral to Shopify's strategy for enhancing information flow and operational efficiency.
Shopify's infrastructure supports a wide array of merchants, from small businesses to large brands, and the company accounts for over 14 percent of the U.S. e-commerce market. Retention rates for merchants achieving significant gross merchandise volume (GMV) milestones are impressive, with 92 percent retention for those reaching one million and 97 percent for those hitting ten million.
Hertz highlights that AI is particularly advantageous for niche products, with 75 percent of AI-attributed orders last quarter originating from categories outside the top 100. She also notes a shift in the ideal employee profile from T-shaped to X-shaped individuals, who possess diverse expertise and can effectively navigate complex challenges.
Despite facing challenges such as tariffs and the intricacies of commerce transactions, Hertz remains confident in Shopify's mission and culture. She believes that the company's unsentimental approach will enable it to adapt and thrive in a rapidly evolving landscape. Hertz reaffirms Shopify's long-term vision of becoming a 100-year company dedicated to supporting entrepreneurs.
This summary was generated from the episode transcript and can contain mistakes.