New Delhi: Shopify CEO Tobi Lutke has declared a new recruitment policy where the company will focus more on using artificial intelligence as opposed to human labour. In a memo to staff, Lütke said that teams will have to show that a role cannot be automated by AI before seeking more staff. This instruction, posted in April 2025, highlights the vigorous attempt of Shopify to incorporate AI into its core business, which is a part of a larger trend in the tech industry as companies seek to maximise efficiency by automating their work.

The policy has brought about controversy on the future of work at Shopify, one of the largest e-commerce platforms that has approximately 8,100 workers. The memo by Lütke that was released on X highlights that AI has become a minimum requirement of every employee, including executives. Seeing that other companies, such as Amazon and Klarna, are also embracing AI-powered shifts in their workforces, the decision by Shopify casts doubt on the future of job security and the place of human workers in the technological industry.

I heard this internal memo of mine is being leaked right now, so here it is: pic.twitter.com/Qn12DY7TFF

— tobi lutke (@tobi) April 7, 2025

AI as the new standard

The directive by Lutke is one of the most crucial events in the work culture of Shopify. He claims that AI will be able to speed up work, especially during the initial stages of projects, when there is a GSD prototype phase. Placing teams to consider AI solutions before considering any other solution will help Shopify simplify operations and rely less on conventional hiring. This would fit in the strategy of the company to introduce AI technologies such as Sidekick, a chatbot that works with merchants, and Shopify Magic, a set of automation tools.

Impact on employees and industry

The policy has raised eyebrows among the workforce of Shopify and other people. Human hires will have to be justified by the employees and thus may slow down hiring and change job roles. According to industry observers, Shopify is following the steps of such companies as Duolingo and Salesforce, where AI is also taking the place of some functions. As some, such as the OpenAI chief operating officer Brad Lightcap, insist that AI is not going to instantly destroy jobs, others view Lutke policy as an indication of more fundamental changes to the workforce. A report by the UN believes that AI has the potential of destabilising 40 percent of jobs across the world, a factor that has intensified fears of unemployment.

Balancing innovation and job security

Shopify executives claim that the policy is not about large-scale layoffs but more intelligent allocation of resources. Lütke has referred to AI as a device to augment large ideas and the motivation to the employees to become innovative. Nonetheless, critics state that it could be a turn-off to talent in a competitive market. Marva Bailer, CEO of Qualaix, said that Shopify’s strategy can motivate workers to use AI in new ways, but the incentive to focus on automation may push away talented employees. The strategy that Shopify uses in this AI-first world may become a precedent among technology companies across the globe.