Shopify CEO pushes greater use of AI instead of hiring new employees

• As artificial intelligence becomes a more prominent presence in the workforce, Shopify’s CEO Tobi Lütke announced a new hiring approach. Before hiring, employees must now prove that they cannot use AI to perform a new position.
• The memo emphasized that Shopify expects employees to embrace AI in their daily work and stated that AI usage will now be a factor in performance reviews, business reviews and product development.
• Shopify has already implemented AI tools for its customers, such as the chatbot Sidekick and the automation tool Shopify Magic.

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As artificial intelligence becomes a bigger presence in the workforce, the CEO of e-commerce platform Shopify is changing the company’s approach to hiring. On Monday, April 7, CEO Tobi Lütke wrote a memo to employees addressing the new plans.

What did the memo say?

In the memo, Lütke told employees that they would need to prove they cannot use AI to perform a new position if they want to hire a new employee.

I heard this internal memo of mine is being leaked right now, so here it is: pic.twitter.com/Qn12DY7TFF

— tobi lutke (@tobi) April 7, 2025

CNBC reported the memo said there’s a fundamental expectation that Shopify employees embrace AI in their daily work. The memo also claimed the technology has been a multiplier of productivity for those who do use it.

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How will employees integrate AI into their workday?

Lütke said he has seen employees use AI on tasks and get 100 times more work done. AI usage will now factor into employee performance reviews, business reviews and product development.

Shopify, which helps businesses build and manage stores online, has already rolled out AI tools for its customers. Some of these technologies include a chatbot called Sidekick and an automation system the company calls Shopify Magic.

Tech companies are looking to streamline costs and are spending billions of dollars on artificial intelligence development.

What about staffing at Shopify?

Reports indicate Shopify cut 10% of its workforce in 2022, then 20% in 2023 and slashed another 200 workers in 2024. It now has a workforce of about 8,000.

Lutke says the new AI rules and guidelines apply to everyone at the company, including him and his executive team.