In a bold and controversial move, Shopify CEO Tobi Lütke has mandated that all new hires at the e-commerce giant must be justified by demonstrating that artificial intelligence (AI) cannot perform the required tasks. This directive, outlined in an internal memo titled “AI usage is now a baseline expectation,” signifies a significant shift in Shopify’s corporate strategy, emphasizing AI integration across all levels of the organization.
Lütke’s memo, which was shared publicly after being leaked, asserts that before requesting additional headcount or resources, teams must demonstrate why AI cannot accomplish the desired outcomes. He challenges employees to envision their departments as if autonomous AI agents were already part of the team, prompting innovative discussions and projects. This approach reflects a broader trend in the tech industry, where companies are increasingly prioritizing AI proficiency among their workforce.
The CEO emphasizes that AI competency is now a fundamental expectation for all Shopify employees, including executives. Performance and peer reviews will incorporate assessments of AI usage, underscoring the company’s commitment to leveraging AI tools to enhance productivity and innovation. Lütke describes AI as the most significant shift in his career, highlighting its transformative impact on workplace dynamics.
This strategic pivot comes on the heels of several organizational changes at Shopify, including significant layoffs in 2023 and 2025, a reorganization in 2024 to better balance managers and individual contributors, and the sale of its logistics business, Deliverr. Shopify has acquired several startups specializing in AI technologies, such as Vantage Discovery, which builds AI-powered search functions for retailers. These moves underscore the company’s commitment to integrating AI into its operations and workforce management.
The memo has sparked a polarized reaction among employees and industry observers. Supporters praise Lütke’s forward-thinking approach and embrace of AI, viewing it as a necessary step toward maintaining competitiveness in the rapidly evolving tech landscape. Critics, however, argue that the policy could lead to job displacement and dehumanize the workplace, particularly for entry-level positions that AI may increasingly occupy
Despite the controversy, Lütke stands firm in his belief that AI is an indispensable tool for the future of work. He contends that opting out of learning AI is no longer a viable option, emphasizing that success at Shopify will depend on the collective skill and ambition of its employees in applying AI to their craft.
As Shopify moves forward with this AI-centric strategy, the broader tech industry is closely watching. Lütke’s directive may set a precedent for other companies to reevaluate their hiring practices and workforce expectations in the age of artificial intelligence. The question remains: will AI become a standard requirement for white-collar jobs, or will concerns about job displacement prompt a reevaluation of such policies?
Shopify’s new hiring policy marks a significant turning point in the integration of AI into corporate strategies. While it presents opportunities for innovation and efficiency, it also raises important questions about the future of work and the role of human employees in an increasingly automated world.
