In a groundbreaking move that signals a fundamental shift in modern workforce management, Shopify CEO Tobi Lütke has implemented a radical new hiring policy that places artificial intelligence at the forefront of staffing decisions. The policy, announced in April 2025, requires employees to demonstrate that AI cannot perform specific tasks before they can request additional headcount or resources.
This unprecedented approach represents more than just a cost-cutting measure—it’s a complete reimagining of how technology companies view human labor in the age of AI. Lütke’s internal memo, which he later shared publicly on social media, stated unequivocally: “Before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI.” The directive challenges teams to envision what their departments would look like if autonomous AI agents were already integrated members of their workforce.
The timing of this policy is particularly significant given the broader context of AI’s rapid advancement and its impact on employment across industries. With the United Nations estimating that AI could disrupt over 40% of roles globally, Shopify’s proactive stance reflects a growing trend among tech leaders who are leveraging AI for efficiency gains while simultaneously reducing human workforce dependency.
Lütke’s approach goes beyond mere suggestion—it establishes AI usage as a “fundamental expectation” for all Shopify employees. This mandate extends to performance reviews, where staff will be evaluated on their ability to effectively integrate AI tools into their daily workflows. The CEO emphasized that employees who resist this technological integration face “stagnation,” which he characterized as “slow-motion failure.”
The policy emerges against the backdrop of Shopify’s recent workforce reductions, having laid off 20% of its staff in 2023 and quietly eliminating positions in its customer service division in early 2025. With approximately 8,100 employees as of 2024, the company appears committed to maintaining operational efficiency through AI integration rather than traditional headcount expansion.
AI Integration as Core Business Strategy
Shopify’s AI-first policy transforms artificial intelligence from an optional productivity tool into a mandatory component of every employee’s skill set. Lütke revealed that he personally uses AI “all the time” and has witnessed employees accomplish “implausible tasks” by leveraging AI to achieve “100 times more work.” This dramatic productivity increase has convinced leadership that AI adoption is not just beneficial but essential for competitive advantage.
The company provides employees with access to comprehensive AI tools, including Microsoft’s Copilot, Anthropic’s Claude, and Cursor. However, Lütke noted that insufficient numbers of employees were taking advantage of these resources, prompting the shift from encouragement to mandate. The new policy ensures that AI exploration dominates the prototype phase of all internal projects tracked through Shopify’s “Get Shit Done” (GSD) system.
Industry-Wide Implications and Workforce Transformation
Shopify’s radical approach mirrors broader trends across the technology sector, where companies are increasingly viewing AI as a replacement for human labor rather than merely an enhancement tool. Sebastian Siemiatkowski, CEO of Klarna, has similarly boasted about AI chatbots performing the work of 700 customer service agents and projected reducing Klarna’s workforce from 4,000 to just 2,000 employees.
This shift raises significant questions about the future of employment in technology and beyond. With over 220 million LinkedIn users marking themselves as “Open to Work”—a 35% increase in just one year—the displacement of human workers by AI is becoming a tangible reality rather than a theoretical concern. The policy highlights the urgent need for broader discussions about AI’s societal impact, including proposals for “robot taxes” where companies replacing human workers with AI would contribute to funds supporting displaced employees.