Can the AI create discount codes?

No, and that is by design. The AI can only share discount codes that you created in Shopify and registered in RagChat, following the usage rules you wrote for each code. It cannot invent codes, change percentages, or offer anything you have not approved.

This means a shopper can never talk the AI into a discount you did not plan.

To set it up (Standard plan or higher), create the discount in your Shopify admin first, then add the code under Settings → AI → Offer discounts → Manage codes. Full steps in Let the AI offer discount codes.