Klaviyo launches AI shopping assistant to compete with retail giants

BOSTON - Klaviyo (NYSE:KVYO), an $8.7 billion market cap company with impressive revenue growth of 34% over the last twelve months, released a public beta of its Conversational AI Agent on Tuesday, offering brands of all sizes an AI-powered shopping assistant similar to Amazon’s Rufus. According to InvestingPro data, the company’s strong financial metrics and growth trajectory make it an interesting player in the e-commerce technology sector.

The new tool, part of the broader Klaviyo Service suite, allows online retailers to provide personalized customer support using real-time session data, storefront information, and marketing insights powered by the company’s data platform. With industry-leading gross profit margins of 76%, Klaviyo demonstrates strong operational efficiency in delivering these technology solutions.

According to Klaviyo’s 2025 Online Shopping Report, consumer preferences are shifting toward AI assistance, with 62% of respondents preferring AI to remember their preferences rather than explaining them repeatedly to salespeople. Additionally, 53% would rather chat with an AI agent than email customer service.

"Until now, only the biggest players could afford to build AI shopping assistants that drive purchases, not just answer simple questions," said Grant Deken, Head of Product for Klaviyo Service, in a press release statement.

The Conversational AI Agent automatically ingests a brand’s product catalog, policies, and FAQs without requiring development work. It can recommend products, suggest cross-sells, and answer questions about sizing, shipping, and order status.

Klaviyo plans to expand the AI Agent’s capabilities later this year to include processing returns, updating subscriptions, and editing shipping details across additional channels like WhatsApp, RCS, SMS, and email.

The Klaviyo Service suite also includes Customer Hub, a branded destination for shoppers to track orders and view personalized recommendations, and Helpdesk, which provides service teams with a unified view of customer interactions.

The company’s survey sampled 2,000 consumers across the US, UK, Australia, and New Zealand for its 2025 Online Shopping Report. While currently not profitable, InvestingPro analysis indicates Klaviyo is expected to achieve profitability this year, supported by its strong financial health score and robust balance sheet. For deeper insights into Klaviyo’s financial outlook and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively on InvestingPro.

In other recent news, Klaviyo Inc. has seen a series of notable developments. Analysts at Cantor Fitzgerald initiated coverage on Klaviyo with an Overweight rating and set a price target of $48, citing the company’s strong position in the ecommerce sector and its expanding reach into larger enterprises. Meanwhile, Benchmark raised its price target for Klaviyo to $44, maintaining a Buy rating after the company’s first-quarter results showed stabilization across customer segments. Stifel also adjusted its outlook, reducing the price target to $45 from $54, while continuing to endorse the stock with a Buy rating following a quarter characterized by strong performance despite economic uncertainties.

Additionally, Klaviyo’s CEO, Andrew Bialecki, initiated a $372 million stock sale to cover tax obligations related to expiring stock options. This offering, managed by Goldman Sachs and Morgan Stanley, will not financially benefit the company itself. Klaviyo’s Net Revenue Retention rate stabilized at 108%, with significant cross-selling contributing to this stability. The company is also seeing potential growth through its pipeline for customer service and marketing analytics solutions. These recent developments reflect Klaviyo’s ongoing efforts to enhance its market position and financial performance.

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