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On Tue, 8 Apr, 12:03 AM UTC
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[1]
Shopify CEO tells teams to consider using AI before growing headcount | TechCrunch
In a recent memo to employees, Shopify CEO Tobi Lütke made a bold policy change: teams must demonstrate why AI can't perform a job before they're permitted to ask for more headcount and resources. "Before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI," Lütke wrote in the memo, which he shared publicly on social media Monday. "What would this area look like if autonomous AI agents were already part of the team? This question can lead to really fun discussions and projects." Advancing the notion that AI and so-called agents may help Shopify maintain a smaller workforce is sure to attract controversy, given widespread concerns about AI's impact on jobs. A new report from the United Nations' Trade and Development organization estimates that AI could disrupt over 40% of roles globally. However, Lütke isn't the only CEO looking to AI for efficiency gains. Other leaders in the tech space have expressed similar sentiments. Sebastian Siemiatkowski, the chief executive of Klarna, has boasted about how Klarna's AI chatbot does the work of 700 customer service agents. He has also said that, thanks to AI, Klarna's workforce could eventually be reduced to just 2,000 people. Klarna currently employs around 4,000. As of 2024, Shopify had around 8,100 employees. The year prior, the company laid off 20% of its staff. In January, Shopify reportedly quietly laid off employees in its customer service division, according to Business Insider.
[2]
What You Can Learn From Shopify's CEO's Memo On Workforce AI
What Shopify's CEO Gets Right - And Wrong - About Workforce AI Shopify's CEO Tobias Lütke released an internal email he'd sent to employees with the subject, "AI usage is now a baseline expectation." His enthusiastic missive implores employees to adopt AI tools "as a thought partner, deep researcher, critic, tutor, or pair programmer." His ultimate conclusion? "AI will totally change Shopify, our work, and the rest of our lives." Lütke says the company needs to embrace AI to keep up with its explosive growth: "In a company growing 20%-40% year-over-year, you must improve by at least that every year." Shopify doesn't want to hire more employees, however: While the company has grown at least 21% per year since 2022, the number of employees has declined from 11,600 in 2022 to 8,300 in 2023 to 8,100 at the end of 2024. So this is an organization dedicated to efficiency. Reading Lütke's memo reveals some important lessons about workforce AI, including several you should emulate and others you should avoid. What Shopify Gets Right: Vision, Practice, And Community You should take inspiration from several Shopify beliefs and practices for workforce AI: What Shopify Gets Wrong: Expectations And Learning Styles There are a few beliefs and practices in Shopify's memo you should avoid, however: Next Steps For You? Let's Talk I've spoken with over two hundred organizations about workforce AI. Forrester clients should reach out to schedule a Guidance Session with me, and I'll help you design a successful workforce AI strategy.
[3]
Shopify CEO says no new hires without proof AI can't do the job
Jay Peters is a news editor covering technology, gaming, and more. He joined The Verge in 2019 after nearly two years at Techmeme. Shopify CEO Tobi Lütke sent a memo to employees saying that before they ask for more headcount or resources, teams must show why they "cannot get what they want done using AI," as reported by CNBC. "What would this area look like if autonomous AI agents were already part of the team? This question can lead to really fun discussions and projects," Lutke says in the memo, which he posted on X. The memo was sent late last month, CNBC says. The broader memo is about how "reflexive AI usage" is a "baseline expectation" at the company. In it, Lütke talks about how AI has been "the most rapid shift to how work is done that I've seen in my career" and that "using AI well is a skill that needs to be carefully learned by... using it a lot." Using AI effectively is "now a fundamental expectation of everyone at Shopify," according to Lütke. AI usage questions will also be added to "our performance and peer review questionnaire." "What we need to succeed is our collective sum total skill and ambition at applying our craft, multiplied by AI, for the benefit of our merchants," Lütke says.
[4]
Shopify CEO: teams must prove AI can't do a task before asking for new hires, resources
Shopify CEO Tobias Lütke released an internal memo in late March where he said, "Reflexive AI usage is now a baseline expectation at Shopify." He then shared it completely a few days later on X (formerly Twitter), saying that it's being leaked anyway, so it might as well come from him. The memo outlines six things: Everyone is expected to use AI in Shopify; all projects must use AI during the prototyping phase; AI use is included in performance and peer reviews; everyone must share what they learned using AI; teams must first check if something can be done using AI before hiring; and that everyone means including the executive team and Lütke himself. According to the CEO, "...using AI well is a skill that needs to be carefully learned by... using it a lot." He has previously said that people should tinker with AI, but he thought that it was too much of a suggestion. So now, he has turned it into an official company policy. Lütke believes that AI is a tool that multiplies productivity by 10x, and when paired with people who "contribute 10x of what was previously thought possible," then Shopify could get 100x the work done. "Our job is to figure out what entrepreneurship looks like in a world where AI is universally available. And I intend for us to do the best possible job of that, and to do that I need everyone's help," said Lütke. He also adds, "What we need to succeed is our collective sum total skill and ambition at applying our craft, multiplied by AI, for the benefits of our merchants." The Shopify CEO says that the e-commerce platform has been growing by 20% to 40% annually -- and that its people must also "improve by at least that every year just to re-qualify." More than that, Lütke thinks that this performance isn't terribly ambitious anymore, specifically because of the availability of AI tools, and that the company's top performers actually want this kind of environment. Many companies are going all-in in AI technologies, especially after investing millions (if not billions) in it. AI can be a useful technology, but it still cannot think like a human. Of course, you should take stock of your available tools (including AI) before bringing someone on board your team. But specifying that people need to prove that AI can't do a specific role before hiring someone is probably not good for the overall morale of people at any company.
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Shopify CEO says staffers need to prove jobs can't be done by AI before asking for more headcount
Tobias Lütke, CEO of Shopify, speaks at the Collision conference in Toronto, Canada, on May 22, 2019. Shopify CEO Tobi Lutke is changing his company's approach to hiring in the age of artificial intelligence. Employees will be expected to prove why they "cannot get what they want done using AI" before asking for more headcount and resources, Lutke wrote in a memo to staffers that he posted to X on Monday. "What would this area look like if autonomous AI agents were already part of the team?," Lutke wrote in the memo, which was sent to employees late last month. "This question can lead to really fun discussions and projects." Lutke also said there's a "fundamental expectation" across Shopify that employees embrace AI in their daily work, saying it has been a "multiplier" of productivity for those who have used it. "I've seen many of these people approach implausible tasks, ones we wouldn't even have chosen to tackle before, with reflexive and brilliant usage of AI to get 100X the work done," Lutke wrote. The company, which sells web-based software that helps online retailers manage sales and run their operations, will factor AI usage into performance reviews, he added. The directive comes as tech companies have collectively earmarked hundreds of billions of dollars for investing in AI development this year. Shopify has rolled out AI tools for its merchants, including a chatbot called Sidekick and a suite of automation tools, which it dubs "Shopify Magic." Just as they're plowing money into AI, tech companies are looking to streamline costs in other areas, either by discontinuing money-losing projects or through layoffs. In 2024, there were roughly 152,000 roles eliminated across 549 tech companies, according to Layoffs.fyi. Shopify's total headcount fell to 8,100 at the end of December from 8,300 a year earlier, according to its latest annual filing. The Canadian company eliminated 14% of its workforce in 2022 and 20% the following year. At an investor event last month hosted by Morgan Stanley, Shopify CFO Jeff Hoffmeister said the company can "keep headcount relatively flat," though employee-related costs could vary due to salary differences. He noted that "a higher comp, high-end AI engineer" can lift compensation costs even if headcount is staying the same.
[6]
Shopify CEO: justify new hires by proving AI can't do the job better
A hot potato: In another example of the impact AI is having on jobs, Shopify's CEO has issued a warning to the company's managers: show that AI can't do the job better than a human before hiring new workers. Shopify previously laid off staff after it started using generative AI to complete some customer support tasks. Like many CEOs, Shopify boss Tobi Lütke has a passion for using AI in the workforce. In an internal memo to employees sent last month titled AI usage is now a baseline expectation, Lütke writes that before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI. "What would this area look like if autonomous AI agents were already part of the team?" Lütke wrote in the memo, which he published on X after it was leaked. "This question can lead to really fun discussions and projects." The promise of increased productivity and fewer workers leaves many CEOs salivating at the prospect of implementing AI into their companies. Lütke is certainly an advocate, waxing lyrical about the technology. Not only does the memo state that using AI is essentially mandatory, but its use will also become part of Shopify's performance and peer review questionnaire. Lütke adds that the AI directive applies to everyone at Shopify, even the CEO himself. Using AI effectively is "now a fundamental expectation of everyone at Shopify," he wrote. "What we need to succeed is our collective sum total skill and ambition at applying our craft, multiplied by AI, for the benefit of our merchants," Lütke says. E-commerce platform Shopify helps people and businesses create and manage online stores, covering everything from initial storefront creation and selling to marketing and analysis. The company has leaned heavily into generative AI tools in recent years. Shopify Magic, its suite of generative AI features built directly into the platform, offers features such as AI-powered product descriptions. There's also Sidekick, a conversational AI built into the admin dashboard. As with many other firms, it appears the more Shopify spends on AI, the more jobs are eliminated. The company laid off 20% of its staff, or around 1,500 people, in December 2023, the same year it started using genAI for some customer service tasks. It also reduced its workforce by 14% in 2022.
[7]
Shopify CEO says employees must prove AI can't do the job before any new hires are approved
Shopify, the popular service behind a lot of e-commerce websites, is making some big changes around AI. Most notably, teams will now need to prove a job can't be done by AI before making any new hires. This was announced in an internal memo released to the Shopify team, later shared on X by CEO Tobi Lutke to get ahead of a leak. The memo is a reflection on the current use of AI within Shopify. While the memo mostly focuses on how employees should be using AI as much as possible to aid their workflow, and that they should improve their understanding of it, it also addresses a selection of changes going forward. "Before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI. What would this area look like if autonomous AI agents were already part of the team? This question can lead to really fun discussions and projects," Lutke stated in the memo. The documentation also highlights that use of AI is "a fundamental expectation of everyone at Shopify" and that questions around use of AI will be added to the company's peer review questionnaires. The memo concludes looking towards Shopify's future with Lutke saying "AI will totally change Shopify, our work, and the rest of our lives. We're all in on this! I couldn't think of a better place to be part of this truly unprecedented change than being here."
[8]
Don't ask for more staff if AI can already do the job, Shopify CEO says
Headcount will remain "flat" but AI will be prioritized over new hires The CEO of Shopify has spoken out about his affinity for artificial intelligence, and it's clear that the tech is set to play a considerable role in the company's future. Tobias Lutke's thoughts on AI had initially been leaked via an internal memo, but owing to the leaks, Lutke decided to share the exact words in an X post. The memo details how the company should be focusing on improving the efficacy of artificial intelligence before managers ask to hire more human workers, with everyone at Shopify expected to be using AI. Speaking about the technology, Lutke noted: "I use it all the time, but even I feel I'm only scratching the surface," indicating how much more the company's workers could be experimenting with AI to get work done. Noting his appreciation for Sophify's existing workforce, who are said to contribute 10x more than what he's previously thought was possible, Lutke added that AI can now boost contributions by 10x, calling for workers and AI to mix for 100x more contributions. He also referenced Shopify's core values: to be a constant learner and to thrive on change. Using AI has now become a "fundamental expectation," and AI questions are to be added to performance reviews for a better understanding of where workers reside with implementation. Maybe the most interesting point in Lutke's email, though, was that "teams must demonstrate why they cannot get what they want done using AI" before asking for more headcount and resources. Lutke encourages employees to consider how autonomous AI agents could be integrated into their teams. In terms of the impacts on the workforce, CFO Jeff Hoffmeister shared an intention to "keep headcount relatively flat," but that's after a 20% headcount reduction (of 2,300 workers) in 2023 and a 10% (1,000) slash in 2022, alongside other smaller cullings.
[9]
Shopify CEO Tobi Lütke: AI is now a 'fundamental expectation' for employees
Shopify CEO Tobi Lutke shared an internal memo on X on Monday that stressed the importance of using AI effectively in daily tasks. In fact, he wrote, using AI is now a "fundamental expectation" of Shopify employees. Spotify product designers are now expected to use AI tools to do all platform feature prototypes. The results, Lutke says, are more exploratory and faster to produce and share. Shopify already provides employees with access to various AI coding tools from Github (Copilot), Cursor, and Anthropic (Claude code). "Our task here at Shopify is to make our software unquestionably the best canvas on which to develop the best businesses of the future," Lutke wrote in the memo, which he said he posted to X because he believed it was about to be leaked anyhow. "We do this by keeping everyone cutting edge and bringing all the best tools to bear . . . for that we need to be absolutely ahead." Lutke says his company will judge employees in performance reviews on how well they know and use AI tools. Employees are expected to continue to learn about and experiment with new AI tools, and share their findings within the company.
[10]
Shopify Ties AI Usage to Performance Reviews Amid 100x Productivity Surge
Tobias Lütke is bullish about AI adoption to increase productivity. Shopify CEO Tobias Lütke, in a post on X, shared an internal memo that he claimed was being leaked online. The memo, titled 'Reflexive AI usage is now a baseline expectation at Shopify', emphasised that teams seeking to increase headcount must justify why AI cannot fulfil the required tasks. "Before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI," the memo stated. Lütke praised AI's transformative potential, calling it the "most rapid shift to how work is done" in his career. He urged employees to embrace AI as a partner in various functions, including coding, research, and tutoring or criticising. He admitted that even his own AI usage is just "scratching the surface". He mentioned that this new AI-first approach will be integrated into Shopify's performance management. The memo further revealed that AI usage will be included in employee performance and peer review questionnaires, with an expectation that staff actively learn and share their AI proficiency with colleagues. The CEO stressed that this isn't merely a suggestion, but a fundamental requirement, aligned with Shopify's core values of continuous learning and embracing change. He cautioned that adapting to and leveraging AI is crucial for individual and company-wide success. Without it, one may not be able to make progress. Lütke believes that AI is a multiplier, enabling employees to achieve significantly higher output. He stated that some employees have improved their output by 10 times with the help of AI. He also shared instances of employees trying their hands at completely new experiences, with productivity increasing 100 times through AI adoption. These numbers may not be entirely surprising, considering AI has been helping developers boost productivity by 10 times. The move will likely spark discussions across the tech industry about the future of work and the fundamental skills required in an AI-powered era.
[11]
Shopify CEO: No new hires, unless you prove AI can't do the job
Qualaix CEO tells NewsNation the move is a great motivator for staffers (NewsNation) -- The head of Shopify, one of the world's biggest e-commerce platforms, has instructed staffers that before any new team members are added, they will need to prove the work cannot be done using artificial intelligence (AI). In a memo to employees, CEO Tobi Lutke told workers to weigh their needs for new hires against AI's capabilities before asking for more resources. Lutke said he wants teams to prove what they need, writing that "teams must demonstrate why they cannot get what they want done using AI. What would this area look like if autonomous AI agents were already part of the team?" AI will also be used in the company's employee performance and peer review processes, according to Lutke's memo. Marva Bailer, founder and CEO of Qualaix, told NewsNation that Lutke's plan is great motivation for staffers. "He's asking them to think about AI as the accelerator. Using the data that they have available, and their big ideas, and how that could augment their big ideas -- and then he'll give them investment," Bailer said. Bailer said in Shopify's case, AI could help employees think like their customers and anticipate wants, needs and shopping patterns. "This is about having quality work for their direct employees and really delighting and serving the customers," Bailer said. Shopify is far from alone in using AI. According to Exploding Topics data, 40% of companies worldwide reported using AI in their businesses last year. "Using AI and technology reinforces your business controls because you know where information is going and you know who's using it, and for what," Bailer said. "It really saves so much time from your internal employees to really work on high-quality projects and think of new ideas." While AI has been criticized for inaccuracies or biased content, Bailer believes the technology can help prevent similar flubs in a customer-focused business like Shopify.
[12]
CEOs Are Telling Their Employees to Embrace AI-or Become Irrelevant
CEOs are urging their teams to embrace AI tools or otherwise be rendered obsolete -- and they're doing so publicly. First, Shopify CEO Toby Lütke published on X what was intended to be an internal memo on the necessity of employees adopting AI. He posted the lengthy directive on social media because "it was in the process of being leaked and (presumably) shown in bad faith," he wrote. The move seemed to inspire a bit of FOMO from Micha Kaufman, CEO of gigwork marketplace Fiverr, who posted screenshots of a very similar corporate directive a day later. Kaufman says his Fiverr AI mandate was sent out via email to employees on Monday, making its timing almost identical to Lütke's. On the topic of hiring, both men echoed each other. "It does not make sense to hire more people before we learn how to do more with what we have," Kaufman wrote.
[13]
Shopify CEO to Employees: Use AI Now
In a lengthy post on X today, Shopify CEO Tobi Lütke said that all of the company's employees must integrate AI into their jobs, and that using it will become a part of their performance reviews. That's the overwhelming message from a memo that also mandates that AI be considered before any new requests for resources. In the memo, Lütke revealed that he uses AI "all the time," and has encouraged employees to develop their AI skills by also using the tech heavily. All Shopify employees have access to a suite of AI tools, including Microsoft's Copilot, Anthropic's Claude, and Cursor, but according to Lutke, not enough employees have taken advantage of the tech. To ensure Shopify doesn't fall behind, Lütke is turning those suggestions to use AI into directives. Going forward, Lütke said, "Using AI effectively is now a fundamental expectation of everyone at Shopify." He wrote that while employees are "welcome to try" opting out of AI, "I cannot see this working out today, and definitely not tomorrow. Stagnation is almost certain, and stagnation is slow-motion failure. If you're not climbing, you're sliding." Lütke also said that AI will transform GSD, the company's internal tool for tracking projects. GSD, which stands for "get shit done," is used by Shopify's internal teams to log the progress and status of every project. From now on, says Lütke, the prototype phase of all GSD projects "should be dominated by AI exploration."
[14]
'Get 100X the Work Done': Shopify CEO Tells Employees to Try AI to Get Work Done Before Asking for More Human Workers
Shopify CEO Tobi Lutke has a new hiring policy that puts AI front and center. Lutke posted a memo he sent to employees on X this week that encourages workers to use AI to accomplish tasks. He wrote that every team should "demonstrate why they cannot get what they want done using AI" before asking for more resources or additional human employees. "Using AI effectively is now a fundamental expectation of everyone at Shopify," Lutke stated, per screenshots of the memo he posted on X. The post has drawn more than 2.6 million views. Shopify, with a market value of over $100 billion at the time of writing, provides small businesses a platform to sell products online. Customers can build online stores and sell products on sites like TikTok and YouTube. The company, which was founded in 2006, hosts over 5.5 million active online stores and made $8.88 billion in revenue in 2024, a 24% year-over-year increase. Related: 37% of Employers Would Rather Hire a Robot or AI Than a Recent Grad: 'Theory Alone Is No Longer Enough' Lutke wrote in the memo that he had seen employees multiply their efforts and use AI "to get 100X the work done." He asked employees to experiment with AI available internally, including Microsoft Copilot AI chatbot and Anthropic's Claude code helper. Lutke also asked employees to think about how their team would look with the addition of autonomous AI agents, which can carry out complex tasks like browsing the web without human assistance. Their ideas for AI agents could lead to "really fun discussions and projects," he wrote. Lutke is enforcing AI experimentation across Shopify, writing in the memo that Shopify would add questions about AI use to its performance and peer reviews. "AI will totally change Shopify, our work, and the rest of our lives," Lutke wrote. "Our job is to figure out what entrepreneurship looks like in a world where AI is universally available." Related: An AI Company With a Popular Writing Tool Tells Candidates They Can't Use It on the Job Application In September, Shopify reported that half of its merchants planned to use AI tools like Shopify Magic, an AI image editor and writer that the company released in January 2024.
[15]
Shopify CEO Tobi Lutke Says Employees Must Prove AI Can't Handle Their Tasks Before Requesting More Headcount - Shopify (NASDAQ:SHOP)
Shopify Inc. SHOP CEO Tobi Lutke has introduced a new policy requiring employees to demonstrate that their tasks cannot be accomplished using AI before requesting additional staff. What Happened: In a memo shared with staff and posted to X, formerly Twitter, on Monday, Lutke outlined a shift in Shopify's approach to hiring and resource allocation. The memo emphasized that employees should consider AI as a tool for productivity before asking for more human resources. "What would this area look like if autonomous AI agents were already part of the team?" Lutke asked in the memo. "This question can lead to really fun discussions and projects." See Also: Shopify Gears Up For Q4 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts He further stressed that using AI has been a "multiplier" for productivity, helping employees achieve results that were once considered impossible or too daunting to attempt. Lutke highlighted that AI usage would now be incorporated into performance reviews, signaling the company's push to embed artificial intelligence into daily tasks across all teams. "I've seen many of these people approach implausible tasks, ones we wouldn't even have chosen to tackle before, with reflexive and brilliant usage of AI to get 100X the work done," Lutke wrote. Why It Matters: The directive comes as tech companies increasingly embrace AI, with Shopify rolling out AI-powered tools such as the "Sidekick" chatbot and the automation suite "Shopify Magic" to assist its merchants. In February, Shopify reported fourth-quarter revenue of $2.81 billion, marking a 31% year-over-year increase and surpassing analysts' expectations of $2.73 billion. Price Action: Shopify's stock has declined about 26.70% year-to-date, ending Monday's session at $78.82 after gaining 2.51%, according to Benzinga Pro data. Benzinga Edge Stock Rankings gives Shopify (SHOP) a strong growth score of 95.11%. Curious how it stacks up against other stocks? Click here for the full analysis. Read Next: Shopify Secures 12% Of US E-Commerce Pie As Reebok, Champion, And Warner Music Join Platform Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock SHOPShopify Inc$80.634.86%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum71.77Growth95.11Quality-Value11.72Price TrendShortMediumLongOverviewGot Questions? AskWhich AI tools can boost Shopify's revenue?How will Shopify's policy impact staffing companies?What industries benefit from AI adoption in e-commerce?Which tech companies are leaders in AI integration?How will Shopify's initiatives affect competitors?What market trends emerge from AI in retail?Could Shopify's growth influence investment strategies?What financial metrics indicate Shopify's recovery?How might AI-driven performance reviews affect HR tech?Which sectors will feel the impact of AI mandates?Powered ByMarket News and Data brought to you by Benzinga APIs
[16]
Shopify CEO Tobias Lütke: Employees Must Learn to Use AI Effectively | PYMNTS.com
Using AI is critical at a time when merchants and entrepreneurs are leveraging the technology and when Shopify is tasked with making its software the best platform on which they can develop their businesses, Lütke said in the memo. "We do this by keeping everyone cutting edge and bringing all the best tools to bear so our merchants can be more successful than they themselves used to imagine," he said. "For that we need to be absolutely ahead." Lütke said in the post that he is using AI all the time and that he invited employees to tinker with the technology last summer, but that his statement at the time was "too much of a suggestion." Now, he said, he wants to change that perception because continuous improvement is expected of everyone at Shopify and AI can deliver necessary capabilities. "Using AI effectively is now a fundamental expectation of everyone at Shopify," Lütke said in the memo. "It's a tool of all trades today, and will only grow in importance." Lütke said in the memo that Shopify will add questions about AI usage to its performance and peer review questionnaire, that employees are expected to share what they learn about AI with their colleagues, and that teams who want to ask for more headcount and resources must demonstrate why AI cannot do what they need done. "What we need to succeed is our collective sum total skill and ambition at applying our craft, multiplied by AI, for the benefit of our merchants," Lütke wrote in the memo. Eighty-two percent of workers across several industries who use generative AI (GenAI) at least weekly agree that it can increase productivity, according to the PYMNTS Intelligence report, "Workers Say Fears About GenAI Taking Their Jobs Is Overblown."
[17]
AI now an 'expectation' at Shopify, will factor into performance reviews, hiring: CEO
Shopify Inc. is doubling down on artificial intelligence with a series of new policies that make the technology a "fundamental expectation" for everyone working there. A new memo released by CEO Tobi Lütke urges the Ottawa-based e-commerce software company's staff not already treating AI like a critic, tutor, programmer or deep researcher to use the technology. Lütke says workers opposed to experimenting with the technology can try to avoid it, but he doesn't see that route being feasible for them, nor working out in the short or long term. As part of the company's AI push, he says questions about the use of the technology will be added to staff performance and peer review questionnaires. He says teams wanting more resources and the ability to hire must also demonstrate why they cannot get what they want done with AI before they will be given permission to carry out their plans. Shopify's use of AI has steadily increased in recent years with the company previously rolling out tools to help answer merchant questions or write product descriptions and email subject lines.
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Shopify CEO encourages staff to adopt AI tools for enhanced productivity By Investing.com
Investing.com -- Tobi Lutke, CEO of Shopify (NASDAQ:SHOP), has issued a memo to his staff encouraging the use of artificial intelligence (AI) tools as a means to enhance productivity and merchant success. In the memo, Lutke emphasized the company's mission to provide an optimal platform for the development of future businesses, and highlighted the role of AI in achieving this goal. Lutke noted that AI usage is now a baseline expectation at Shopify, with AI tools acting as a multiplier to augment the skills of the team, enabling them to tackle tasks previously seen as implausible. He encouraged his staff to use AI as a thought partner, deep researcher, critic, tutor, or pair programmer, stating that using AI well is a skill that needs to be learned by using it frequently. Lutke also stressed that AI must be part of the prototype phase of any given project, as it accelerates the learning and information creation process. He further announced that AI usage questions will be added to performance and peer review questionnaires to facilitate feedback and improvement. The CEO also made it clear that before asking for additional resources, teams must demonstrate why they cannot achieve their goals using AI. He added that this expectation applies to everyone in the company, including himself and the executive team. In the memo, Lutke described Shopify as a company that must continue to grow and improve year over year, in line with its core values of being a constant learner and thriving on change. He emphasized that learning to use AI effectively is now a fundamental expectation for all Shopify employees. Lutke concluded by stating that AI will completely transform Shopify, the work they do, and their lives. He encouraged the team to explore what entrepreneurship looks like in a world where AI is universally available, and asked for everyone's help in making Shopify the best possible platform for their merchants.
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Shopify's CEO Tobi Lütke has issued a memo requiring teams to demonstrate why AI can't perform a job before requesting additional headcount, signaling a significant shift in the company's approach to workforce management and AI integration.
In a groundbreaking move, Shopify CEO Tobi Lütke has issued a memo mandating that teams must demonstrate why artificial intelligence (AI) cannot perform a job before requesting additional headcount or resources. This policy shift underscores the e-commerce giant's commitment to integrating AI into its core operations and signals a potential transformation in workforce management across the tech industry 1.
Lütke's memo, shared publicly on social media, outlines several key points:
The CEO emphasizes that "using AI well is a skill that needs to be carefully learned by... using it a lot," positioning AI proficiency as a critical competency for all Shopify employees 3.
Lütke justifies this approach by citing Shopify's rapid growth, stating that the company has been expanding by 20% to 40% annually. He argues that employees must "improve by at least that every year just to re-qualify," and that AI tools can potentially multiply productivity by 10x 4.
This strategy aligns with Shopify's focus on efficiency. Despite consistent revenue growth, the company's workforce has decreased from 11,600 in 2022 to 8,100 at the end of 2024 2.
Shopify's AI-first approach reflects a broader trend in the tech industry. Other leaders, such as Klarna's CEO Sebastian Siemiatkowski, have expressed similar sentiments about AI's potential to streamline operations and reduce workforce size 1.
However, this move has sparked debate among industry analysts and employees. While some praise the forward-thinking approach, others express concerns about potential job displacement and the impact on employee morale 45.
The policy raises questions about the future of work in an AI-driven economy. A recent United Nations report estimates that AI could disrupt over 40% of roles globally, highlighting the urgency of addressing workforce transitions 1.
Shopify's approach to integrating AI into performance reviews and making it a fundamental expectation for all employees signals a shift in how companies may evaluate and develop talent in the future 3.
Shopify's CFO, Jeff Hoffmeister, has indicated that while the company aims to keep headcount relatively flat, employee-related costs may still vary due to factors such as higher compensation for AI engineers 5.
Shopify's bold stance on AI integration represents a significant moment in the evolving relationship between technology and the workforce. As companies increasingly look to AI for efficiency gains, the tech industry and beyond will be watching closely to see how Shopify's experiment unfolds and whether it sets a new standard for workforce management in the AI era.
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Klarna's CEO Sebastian Siemiatkowski announces a hiring freeze, citing AI's ability to perform all tasks. The company's workforce has shrunk by 22% in a year, raising questions about AI's impact on employment.
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A new survey reveals that 60% of C-suite executives are actively seeking roles at AI-forward companies, highlighting the growing importance of AI adoption in the workplace and the challenges it presents for both leadership and employees.
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Lattice AI, founded by Jack Altman, proposes integrating AI 'workers' into companies. The concept raises questions about the future of work and AI's role in the workforce.
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A prominent tech CEO advises against misleading employees about AI's influence on the workforce. He emphasizes the need for transparency and proactive measures to address the changing job landscape.
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2 Sources
A recent survey by Upwork highlights the unintended consequences of AI adoption in the workplace. Despite promises of increased efficiency, many employees report longer hours and heightened stress levels.
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4 Sources
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