Shopify CEO Declares AI Use Mandatory Across Company as Tobi Lütke Unveils Bold New Strategy

Shopify CEO Declares AI Use Mandatory Across Company as Tobi Lütke Unveils Bold New Strategy

Shopify CEO Tobi Lütke has made a bold and transformative declaration that is shaking up the tech and e-commerce world — artificial intelligence (AI) use is no longer optional at the Canadian e-commerce giant. In a groundbreaking internal memo shared with employees and later posted publicly on X (formerly Twitter), Lütke outlined a sweeping cultural shift within Shopify, mandating that AI must now be at the center of all operations, workflows, and decision-making processes.

According to the memo, every team at Shopify is now required to justify why AI cannot complete a given task before requesting additional resources or new hires. This radical shift toward AI-first thinking is a clear signal that Shopify is entering a new era of technological integration, one where the use of AI is not just encouraged but expected at every level of the company. “Before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI,” Lütke emphasized. He went on to ask employees to imagine: “What would this area look like if autonomous AI agents were already part of the team?”

This directive is not just a suggestion—it’s now a baseline expectation across the organization. Reflexive AI usage is being hardwired into Shopify’s culture, setting a new standard for performance and innovation. The shift is part of a broader trend in the tech industry, where companies are increasingly relying on AI to drive efficiency, reduce costs, and unlock new levels of productivity. Shopify, a platform used by millions of online merchants worldwide, is now positioning itself as a front-runner in this AI-driven future.

To support this vision, Shopify has already embedded AI across its product and service ecosystem. The company is leveraging powerful tools such as Shopify Magic—a suite of automation features—and Sidekick, an AI-powered chatbot that assists merchants with everyday tasks. Developers within the company also have access to cutting-edge platforms like Copilot, Claude, and Cursor, along with internal tools such as chat.shopify.io. These technologies are designed to help employees and customers alike work smarter, faster, and more creatively.

Lütke described AI as a “massive productivity multiplier,” citing real-world examples where employees used AI to complete tasks that would have once seemed impossible, achieving results up to 100 times more efficient than traditional methods. “For the first time, we see the tools become 10X themselves,” he noted, underscoring the potential for AI to not just enhance productivity but to revolutionize the very nature of work at Shopify.

As part of this cultural transformation, AI integration is now being formally woven into employee performance reviews and peer assessments. Staff are expected to demonstrate both proficiency in using AI and a commitment to continuously learning and adapting. Lütke urged teams to treat AI as a true collaborator—a tutor, assistant, coder, researcher, and even a critic—available throughout every phase of a project, including the early “GSD prototype phase.”

The timing of this announcement is particularly noteworthy, as it comes amid a wave of cost-cutting across the tech industry. Shopify itself has seen a reduction in headcount, dropping from approximately 8,300 to 8,100 employees in the past year. This follows previous rounds of layoffs, including a 14% cut in 2022 and a 20% cut in 2023. In January, reports also surfaced that the company had quietly let go of additional customer support staff. With AI seen as a key tool for doing more with less, Lütke’s strategy reflects a broader shift in how tech companies are optimizing their operations.

Importantly, Lütke sees this not as a loss, but as a transformative opportunity to reshape Shopify from the ground up. “AI will totally change Shopify, our work, and the rest of our lives,” he declared, making it clear that this is not just a technological update—it’s a complete evolution in how the company operates, innovates, and grows.

As Shopify steps boldly into its AI-first future, all eyes are on how this ambitious transformation will influence the broader tech and e-commerce landscape. For more updates and in-depth video coverage, visit our YouTube channel THE OLIGO.