Shopify CEO Urges Teams to Use AI Before Expanding Workforce

In a bold move that's sure to stir up debate, Shopify's CEO Tobi Lütke has introduced a new policy that flips the script on hiring. In a memo that went viral on social media, Lütke laid out a new rule: before any team at Shopify can request additional staff or resources, they must first prove that AI can't do the job.

"Before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI," Lütke stated in his memo. He went on to encourage teams to think creatively about how AI could fit into their operations, asking, "What would this area look like if autonomous AI agents were already part of the team? This question can lead to really fun discussions and projects."

This policy comes at a time when the impact of AI on employment is a hot topic. A recent report from the United Nations' Trade and Development organization suggests that AI could potentially disrupt over 40% of jobs worldwide. Lütke's approach to leveraging AI to keep the workforce lean is likely to fuel further debate on the subject.

But Shopify isn't alone in this approach. Other tech leaders are also turning to AI to boost efficiency. Take Sebastian Siemiatkowski, CEO of Klarna, who has publicly praised the company's AI chatbot for handling the workload of 700 customer service agents. Siemiatkowski has even suggested that AI could eventually slim down Klarna's workforce to just 2,000 employees, from its current 4,000.

As for Shopify, the company had around 8,100 employees as of 2024. Just the year before, they had made significant cuts, laying off 20% of their staff. More recently, in January, Shopify reportedly made quiet cuts to its customer service division, according to Business Insider.

The move by Lütke to prioritize AI over human headcount is a bold one, reflecting a growing trend among tech companies to harness the power of AI for greater efficiency. It's a strategy that's sure to be closely watched—and debated—as the role of AI in the workplace continues to evolve.