Toronto-based startup ShopReel AI is aiming to reshape how consumers shop online by transforming social video content into AI interactive, shoppable experiences. Co-founded by Lawrence Tung, the company merges artificial intelligence with social commerce to let users “shop what they watch” directly from videos on platforms like Instagram.
The concept emerged when social media video content became a dominant retail discovery channel. “We saw how quickly TikTok and Reels changed how people engaged with brands,” said Tung. “Yet, online shopping hadn’t caught up to that video-first world. We asked ourselves: why are we still shopping through static images and text when we consume everything else through video?”
Turning Social Media into a Storefront
At its core, ShopReel AI connects social engagement and commerce through video. Using advanced AI, the platform scans each frame of a video to identify and tag products automatically, turning social video content into a digital storefront. Consumers watching an Instagram Reel can tap directly on an item, such as a sweater, jacket, or accessory, within the same scene, and instantly view its product page.
“We call it contextual social commerce,” explained Tung. “People use social media not just for entertainment but also for inspiration. The challenge is that the shopping experience has been disconnected. You might see a product you love in a reel, click through, and then have to hunt around a website to find it. ShopReel AI bridges that gap.”
By linking directly from video to purchase, ShopReel AI provides what Tung describes as “continuity of experience.” The goal, he said, is to make shopping as seamless as doing what we love, watching videos — and for brands, that means higher engagement and conversion.
How the Technology Works
The company’s platform is built for simplicity. “Merchants don’t have to do any manual tagging,” Tung explained. “They simply upload the video and the associated product links. Our AI does the rest, recognizing products within the reels and connecting them back to the brand’s product page. It’s built to be intuitive and low-lift for teams that are often stretched thin.”
The experience for consumers is magical and mirrors how they already engage with video content on Instagram or TikTok, except now the link between discovery and purchase is instantaneous. “When someone clicks on any part of a product as seen in a reel they’re taken directly to the exact product page featured” said Tung. “No searching, no guesswork.”
Smarter Analytics for Brands
Beyond convenience, ShopReel AI provides merchants with a level of insight rarely possible in social commerce. Brands can now track engagement not just at the video level but frame by frame, understanding exactly how viewers interact with products.
“For the first time, brands can see how customers engage within a video,” Tung said. “They can identify which products attract the most attention, which moments drive clicks, and how that correlates with sales. Think of it like a dynamic heatmapin video.”
These analytics, he explained, go far beyond standard metrics like views or impressions. Instead, they provide “intelligent information in context”, helping brands refine their creative, optimize product placement, and better understand the connection between engagement and conversion.
Designed for Independent Retailers as Well as Major Brands
While ShopReel AI’s technology is robust enough for enterprise use, Tung emphasized that the platform was also built with smaller retailers in mind. “Independent merchants often face budget and resource constraints,” he said. “We wanted to create a tool that gives them access to the same kind of immersive commerce experience that big brands have.”
Using nothing more than a smartphone, merchants can create authentic shoppable reels that connect directly to their online store. “It’s about making high-impact content achievable and affordable,” said Tung. “We think this levels the playing field.”
The company’s early discussions with retailers reflect growing interest in that capability. ShopReel AI is currently in conversations with several brands about pilot campaigns and upcoming launches. “Our product is scalable and ready to go,” Tung confirmed. “We’re working closely with partners who see the potential to bring their content to life in new ways.”
Bridging Online and In-Store Experiences
While the platform is designed for digital channels, Tung believes there are compelling applications for physical retail as well. “We’re seeing a lot of interest in omnichannel storytelling,” he said. “Imagine a brand filming shoppable reels inside their own store. Pulling products off the rack and creating looks right from their physical space.”
That kind of content can strengthen familiarity and connection for customers who later visit in person. “When shoppers walk into the store and recognize the layout or products from what they saw online, it deepens the relationship,” Tung explained. “It brings the online and offline worlds together in a really natural way.”
The Role of Authenticity in an AI-Driven World
While the company embraces AI, Tung stressed that authenticity remains central to the experience. “There’s a lot of excitement about generative AI, but we believe shopping still needs to feel real,” he said. “When people make a purchase, they want to know exactly what they’re getting.”
For that reason, ShopReel AI focuses on enhancing real content rather than generating synthetic imagery. “We think the integration of AI into authentic, real-life video makes the most sense right now,” he added. “Customers want to see genuine products in context, not computer-generated versions. That builds trust.”
Tung acknowledged that some brands are experimenting with AI-generated advertising, citing recent examples like Coca-Cola’s AI holiday campaign, but he believes consumers will increasingly value the human element. “Authenticity is going to matter more than ever,” he said. “That’s where we see ShopReel AI standing out.”
A Proudly Canadian Innovation
Headquartered in Toronto, ShopReel AI is part of Canada’s growing community of technology innovators. The company is also affiliated with the Vector Institute, a government-funded organization that supports the adoption of artificial intelligence across industries.
“The Vector Institute has been instrumental in helping us connect with talent and build our team,” said Tung. “It’s a world-class ecosystem, and we’re proud to be part of it. There’s incredible innovation happening here in Toronto, and we want to contribute to that story.”
He hopes that more Canadian retailers will collaborate with local technology firms like ShopReel AI to accelerate digital transformation. “Canada has the talent and creativity to lead in retail technology,” Tung said. “We just need to keep building those bridges between the tech community and the retail sector.”
The Future of Social Commerce
As social media continues to influence purchasing decisions, platforms like ShopReel AI may represent the next evolution of e-commerce. With over 60 percent of social media users engaging with shopping-related content, Tung believes the timing is ideal for contextual commerce to take off.
“We’re just at the beginning,” he said. “Video is how people consume information today and increasingly, it’s how they shop. As we onboard retailers to our platform,our mission is to make that process as seamless and enjoyable as possible, both for consumers and for the brands that serve them.”
Looking ahead, ShopReel AI plans to expand its partnerships and roll out new features that integrate further with social networks and retail systems. “Our roadmap includes exploring generative tools that enhance video analytics,” Tung said. “But the foundation will always be authentic, intelligent, and human-driven shopping experiences.”
