Shopify CEO Urges Teams to Consider AI Before Hiring More Staff

In a recent memo to employees, Shopify CEO Tobi Lütke introduced a bold new policy: before requesting additional headcount or resources, teams must first justify why the task can't be accomplished using artificial intelligence.

"Before asking for more people or resources, teams must demonstrate why AI can’t handle the task," Lütke wrote in the memo. "What would this area look like if autonomous AI agents were already part of the team? That question alone can lead to some fascinating discussions and projects."

This move comes amid growing global concern about the impact of AI on jobs. The notion that AI and so-called autonomous agents could help Shopify operate with a leaner workforce is likely to stir debate. A recent report by the United Nations Conference on Trade and Development estimated that over 40% of jobs worldwide could be affected by AI.

However, Lütke isn’t the only tech leader embracing AI to drive efficiency. Other executives in the tech industry have echoed similar sentiments.

Sebastian Siemiatkowski, CEO of Klarna, has proudly stated that the company’s AI chatbot now handles the work of 700 customer service agents. He also noted that AI has enabled Klarna to cap its workforce at just 2,000 employees—despite the company currently employing around 4,000 people.

As of 2024, Shopify had around 8,100 employees. Just a year earlier, the company laid off 20% of its workforce. According to Business Insider, Shopify also quietly let go of staff from its customer service division in January.