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April 8, 2025

Shopify CEO Mandates AI Integration Before Team Expansion

shopify ceo mandates ai integration before team expansion
Photo source: Bloomberg

In an organisational overhaul, Shopify has mandated artificial intelligence adoption as a core operational requirement, with CEO Tobi Lütke emphasising it as a “fundamental expectation” for all teams.

The policy, outlined in an internal memo shared publicly on social media, compels employees to demonstrate why AI cannot fulfil specific tasks before requesting additional personnel or resources. Lütke stressed that teams must envision how autonomous AI agents could change their workflows, framing this shift as critical to maintaining competitive advantage.

“Using AI effectively is now a baseline expectation,” he stated, adding that stagnation without its adoption equates to “slow-motion failure.”

The directive follows an industry trend of prioritising AI-driven efficiency. Klarna’s CEO Sebastian Siemiatkowski recently revealed that their AI chatbot handles tasks equivalent to 700 customer service agents, with plans to reduce their workforce to approximately 2,000 employees. Similarly, a United Nations report estimates over 40% of global jobs could face AI-driven disruption.

Shopify’s approach extends beyond internal policies, as it integrates AI into its merchant-facing tools. The company has rolled out features like Sidekick, an AI assistant that helps businesses manage stores and optimise promotions, alongside Shopify Magic, which automates product descriptions and SEO enhancements. These developments coincide with workforce adjustments, including a 20% reduction in staff during 2023 and undisclosed layoffs in customer service roles earlier this year, as reported by Business Insider.

Moreover, the policy requires employees to document AI experimentation outcomes, redefine workflows around autonomous agents, and prioritise upskilling. Lütke warned that resistance to AI adoption risks professional obsolescence, positioning the mandate as essential for helping merchants “surpass their own expectations.”

Centralised AI access via chat.shopify.io and cross-departmental training initiatives aim to standardise adoption, showing mounting pressure on tech firms to balance innovation with ethical employment practices.