Shopify CEO Tobi Lutke wants proof you’re better than a bot
As AI is embedded into performance reviews and operations, employees must develop their AI literacy now – or risk obsolescence.
Shopify CEO Tobi Lutke sent shock waves when he recently announced his decision to revamp the company’s hiring practices in response to the rise of AI.
In a memo to employees, Lutke laid out a bold new directive: before seeking additional human resources or headcount, employees must demonstrate why AI cannot accomplish the task at hand.
This is part of a wider strategy to embrace AI as a core tool in the workplace, reflecting a growing trend across the tech industry.
Lutke’s memo posed a provocative question:
What would this area look like if autonomous AI agents were already part of the team?
The answer, he suggests, should lead to innovative discussions and projects that explore AI’s potential within the company. This approach is aimed at fostering a culture where AI is seen as a productivity multiplier, not a replacement.
In fact, Lutke views AI as an essential part of everyday operations, one that has already enhanced productivity for many employees.
“I’ve seen many of these people approach implausible tasks, ones we wouldn’t even have chosen to tackle before, with reflexive and brilliant usage of AI to get 100X the work done,” Lutke said.
As such, AI usage will now factor into performance reviews, underscoring its importance in driving success at Shopify.
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AI investment and workforce cuts
The new hiring policy at Shopify aligns with a broader trend in the tech sector, where companies are investing heavily in AI development while simultaneously cutting costs. For example, Shopify has rolled out AI tools such as the Sidekick chatbot and “Shopify Magic” automation suite to support its merchants.
However, in 2024, tech companies collectively eliminated 152,000 jobs, reflecting a trend towards streamlining operations.
Shopify itself reduced its workforce by 14% in 2022 and by 20% the following year, a process that continued as the company shifted its focus towards AI-driven efficiencies.
Shopify CFO Jeff Hoffmeister highlighted the growing importance of AI talent. He noted that while the company intends to keep headcount flat, the rise of specialised roles, such as high-compensation AI engineers, could impact overall employee costs.
A shift in employment practices
Roger Dooley, a Forbes contributor, suggests that Shopify’s new hiring policy signals a major shift in employment practices, one that could ripple across industries. He warns that the focus is no longer on “Can AI do this job?” but on “Prove to me why AI can’t.” This puts the burden on employees to justify their role in a world increasingly dominated by AI.
Lutke’s memo also raises concerns about the future of work for employees who fail to embrace AI. With AI now embedded in performance reviews, those who resist this shift may find themselves falling behind, potentially leading to redundancy.
This is particularly pertinent for marketing departments, where AI tools are rapidly advancing in areas such as content generation, campaign optimisation, and customer journey mapping.
The economics of AI job replacement
The economic logic behind replacing human labour with AI is undeniable. Companies like Klarna have already demonstrated how AI can replace hundreds of jobs. Klarna, for example, eliminated 700 call centre positions, with AI completing the tasks in under 20% of the time, while maintaining customer satisfaction. This move saved the company an estimated US$40 million in the long term.
Such financial incentives make it harder for companies to resist the pressure to cut human roles. For many, the bottom line is king, and AI-driven cost savings are increasingly difficult to ignore.
As Lutke noted, the companies that thrive will be those that can leverage AI as a force multiplier, boosting productivity and eliminating inefficiencies.
For workers, the shift to an AI-first world presents both challenges and opportunities. The key to remaining valuable in this new landscape is adaptability. Employees must learn to become irreplaceable by focusing on uniquely human capabilities – such as empathy, creativity, and relationship-building – which AI cannot replicate.
At the same time, mastering AI tools will be essential for survival. The most successful employees will be those who embrace AI as an augmentation of their own skills rather than a threat.
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The future of employment: AI as a constant presence
Lutke’s AI-driven hiring policy serves as a bellwether for the future of work, where employees will increasingly have to justify their roles in the face of automation. The question is shifting from whether AI can replace jobs to whether humans can prove their role in a world where AI performs many tasks more efficiently.
As this transition accelerates, companies will have to integrate AI into their business models while preserving the essential human qualities that machines cannot replicate.
Workers who can adapt to this reality by mastering AI tools and showcasing their unique human value will have the best chance of succeeding in an AI-driven world.
Dooley suggests: rather than waiting for a meeting where the need for AI justification is discussed, employees must proactively document their contributions, master the AI tools available in their fields, and position themselves as orchestrators of AI rather than mere performers of tasks.
In the end, Shopify’s policy is a forward-thinking strategy that puts the focus on the potential of AI while also addressing the changing role of human talent. This shift may seem radical to some, but it is simply ahead of the curve – a sign of the times in a world where AI is transforming what it means to be human at work.
