Shopify CEO: Prove AI Can’t Do It Before Requesting New Hires

In a memo to employees, Shopify CEO Tobi Lutke said workers will need to prove why a task cannot be completed using artificial intelligence before requesting additional headcount or resources.

The directive, shared with employees late last month and posted publicly on X, signals a shift in how the e-commerce platform approaches productivity and staffing in the AI era.

“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.”

Lutke emphasized that Shopify now has a “fundamental expectation” that staff are integrating AI into their day-to-day work. He described AI as a “multiplier” for those who have embraced it, noting that employees using AI have been able to accomplish previously unthinkable tasks at 100 times the typical output.

“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,” he wrote.

AI usage will also factor into employee performance reviews going forward, according to the memo.

AI as Leverage Amid Cost Control

The policy shift comes at a time when tech companies are investing heavily in AI while simultaneously cutting costs. In 2024 alone, over 152,000 tech roles were eliminated across 549 companies, according to Layoffs.fyi.

Shopify’s headcount dropped from 8,300 to 8,100 in 2023, continuing a multi-year workforce reduction. The company laid off 14% of its employees in 2022 and another 20% in 2023.

At a recent Morgan Stanley investor event, Shopify CFO Jeff Hoffmeister said the company aims to keep overall headcount relatively flat, but noted that compensation may rise as it invests in “higher comp, high-end AI engineers.”

Shopify has introduced a range of AI tools under its “Shopify Magic” suite, including the Sidekick chatbot and various automation features designed to boost merchant productivity.

What This Means

Shopify’s AI-first directive reflects a growing industry trend: treating AI not just as a support tool, but as a gatekeeper for human hiring. As automation tools proliferate, companies may increasingly require employees to justify new roles based on what machines can't yet accomplish.

This shift also signals a deeper change in workplace culture, where fluency in AI is becoming a core performance metric, not just a technical skill. Employees are expected to adapt quickly, retrain, and rethink how they approach their roles—or risk being left behind.

At the same time, these expectations raise concerns about job security. As AI is positioned as a productivity multiplier, the burden falls on workers to prove their continued value in an increasingly automated environment. While companies may not explicitly tie job cuts to AI adoption, the pressure to “do more with less” often precedes workforce reductions, especially for roles deemed repetitive or easily automated.

Shopify’s approach could influence other firms to adopt similar policies, accelerating the shift toward leaner teams supported by high-output AI tools and fewer traditional hires.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.