"AI use is no longer optional at Shopify" declares CEO Tobi Lütke in internal memo

Shopify is undergoing a major cultural transformation, placing artificial intelligence (AI) at the heart of its operations and decision-making. In a bold move that’s reverberating across the tech industry, CEO Tobi Lütke has told employees they must now justify why AI cannot complete a task before requesting additional resources or new hires.

In an internal memo shared with staff and later posted on X (formerly Twitter), Lütke outlined the company’s new AI-first mandate. “Before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI,” he wrote. “What would this area look like if autonomous AI agents were already part of the team?”

The message signals a decisive shift at the Canadian e-commerce giant, which provides tools for online merchants. Lütke emphasised that AI use is no longer optional at Shopify, it’s now a fundamental expectation for all employees, from junior staff to top executives. “Reflexive AI usage is now a baseline expectation at Shopify,” he stated.

The company has already begun integrating AI across its ecosystem. Tools like Shopify Magic, a suite of automation features, and Sidekick, a chatbot designed to assist merchants, are helping staff and customers alike work more efficiently. Developers also have access to platforms such as Copilot, Claude, and Cursor, while internal tools like chat.shopify.io remain available to all.

Lütke described AI as a "massive productivity multiplier" for those who embrace it, citing instances where employees used AI to tackle tasks that would have previously seemed implausible, in some cases achieving 100 times the expected output. “For the first time, we see the tools become 10X themselves,” he said.

Staff are now expected to factor AI into every stage of their workflow, including the early “GSD prototype phase” of projects. Lütke encouraged teams to treat AI as a partner — one that can assist with everything from coding and research to acting as a tutor, assistant or even a critic. “Using AI well is a skill that needs to be carefully learned by using it a lot,” he explained.

Importantly, this shift is being formally integrated into Shopify’s employee assessment process. AI usage will now influence performance reviews and peer feedback, with staff expected to demonstrate both proficiency and a commitment to learning. “Getting peers to provide feedback on how this is going will be valuable,” Lütke noted.

The timing of this change is also significant. Amid a broader trend of cost-cutting in tech, including widespread layoffs and project closures, companies are increasingly turning to AI as a way to streamline operations. Shopify’s headcount dropped from around 8,300 to 8,100 over the past year, following previous workforce reductions of 14% in 2022 and 20% in 2023. In January, it was also reported that Shopify had quietly let go of additional customer support staff.

Lütke sees the integration of AI not as a threat, but as a transformative opportunity. “AI will totally change Shopify, our work, and the rest of our lives,” he declared.