Shopify is taking a bold step in redefining its hiring strategy by emphasizing the use of artificial intelligence (AI) among its workforce. CEO Tobi Lutke recently shared a memo with employees that encourages them to leverage AI tools to improve efficiency before seeking additional human resources.
Lutke stressed the importance of demonstrating how tasks can be accomplished through AI, stating that every team is expected to provide justification for not meeting their goals using AI solutions. “Using AI effectively is now a fundamental expectation of everyone at Shopify,” he asserted in the memo, which gained significant attention on social media, receiving over 2.6 million views.
With a market capitalization exceeding $100 billion, Shopify offers a platform that enables small businesses to create online stores and sell products across various digital channels such as TikTok and YouTube. Since its inception in 2006, the company has grown to host over 5.5 million active online stores and reported a revenue of $8.88 billion in 2024, marking a substantial 24% increase year-over-year.
In his memo, Lutke highlighted the potential of AI to exponentially boost productivity, claiming that some employees have achieved “100X the work done” through effective AI utilization. He encouraged his team to explore AI tools available within the organization, including Microsoft Copilot and Anthropic’s Claude, to enhance their workflows.
Lutke also introduced the idea of integrating autonomous AI agents capable of performing complex tasks, such as browsing the web without human oversight. He believes that discussions surrounding the implementation of these AI agents could spark exciting projects and innovations.
Furthermore, Shopify is committed to incorporating AI use into its performance evaluations and peer reviews, a move Lutke believes will fundamentally transform how the company operates. “AI will totally change Shopify, our work, and the rest of our lives,” he remarked. “Our job is to figure out what entrepreneurship looks like in a world where AI is universally available.”
As of September, half of Shopify’s merchants indicated plans to implement AI tools, including Shopify Magic, an AI-driven image editor and writer launched in January 2024. While the company has seen workforce reductions in recent years, these changes have not been directly attributed to AI adoption. Shopify’s employee count decreased from 11,600 in December 2022 to 8,100 by December 2024, following two major layoffs of about 1,000 employees in July 2022 and 20% of its workforce in May 2023.
