A week after e-commerce giant Amazon announced that it is equipping its sellers with new generative AI advertising tools, Shopify is now looking to demonstrate to its investors how its AI products can drive growth for the company.

According to forecasts from the London Stock Exchange Group (LSEG), Wall Street expects Shopify’s sales to grow by 22.38% to $1.67 billion compared to the previous year.

In September, Shopify’s Chief Financial Officer, Jeff Hoffmeister, highlighted the company’s AI technologies as a “superpower” for sellers, especially in terms of aiding them in product selection and expanding their business to new regions.

Shopify offers online retailers various services and software solutions, including apps that enable seamless selling on platforms like Amazon and Walmart, both of which are also investing in AI features for retailers.

In July, after divesting its logistics division in May, Shopify launched Shopify Magic, a suite of AI-powered tools such as product descriptions, virtual assistants, blog posting, and email campaign tools. As part of this AI suite, Shopify introduced the AI software Sidekick, which assists sellers in making decisions regarding marketing, promotions, and inventory management while reducing their reliance on third-party widgets.

Analysts predict that sales of Shopify’s merchant products, which include Shopify Magic, will see a 21% increase to $1.2 billion compared to the previous year, marking the company’s first quarterly decline.

In comparison, during the third quarter, Amazon experienced a 19.8% growth in its third-party seller services as part of its efforts to attract more merchants to its marketplace.

Shopify Magic is a crucial element of the company’s long-term strategy to attract more merchants to its platform, who are willing to pay higher prices for its services.