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Shopify CEO Advocates for AI Integration in Hiring Practices

Tobi Lutke, the Chief Executive Officer of Shopify, is reshaping the company’s hiring strategy to adapt to the growing influence of artificial intelligence (AI). In a recent communication to staff shared on X, Lutke emphasized the need for employees to demonstrate why their tasks cannot be accomplished with AI before requesting additional personnel or resources.

In his memo, Lutke posed a thought-provoking question: “What would this area look like if autonomous AI agents were already part of the team?” This inquiry aims to foster engaging discussions and innovative projects among employees.

Lutke outlined a clear expectation that all employees should incorporate AI into their daily responsibilities, noting its significant potential to enhance productivity. He remarked on how many have successfully tackled previously daunting tasks through the effective use of AI, achieving remarkable results.

Shopify, a company that provides tools for online retail management, has been proactive in implementing AI technologies, rolling out tools like a chatbot called Sidekick and various automation features under the banner “Shopify Magic.” Lutke stated that familiarity with AI will now play a role in employee performance evaluations.

This shift toward AI comes at a time when technology firms are heavily investing in AI advancements, allocating hundreds of billions of dollars in 2023 alone. Simultaneously, many companies are seeking to optimize expenses, often leading to project discontinuations or job reductions. According to Layoffs.fyi, approximately 152,000 positions were cut across 549 tech firms in 2024.

As part of its adjustments, Shopify’s workforce decreased from 8,300 to 8,100 by the end of December 2023, following a 14% reduction in 2022 and an additional 20% cut in 2023. At a recent investor gathering organized by Morgan Stanley, Shopify’s Chief Financial Officer, Jeff Hoffmeister, indicated that while overall headcount might stabilize, fluctuations in employee-related costs could arise from variations in salary, particularly with high-caliber AI engineers.

WATCH: AI will continue to rally over the next two years.

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