“Prove to me why AI can’t do this job.” That blunt command from Tobi Lütke, the chief executive of Shopify, captures a dramatic shift in the way companies are thinking about hiring and using resources in the age of artificial intelligence. As AI disrupts industries overnight, Shopify’s new policy effectively puts the onus of proof on employees and managers to explain why a human contribution is needed as opposed to an AI alternative. It’s not just a hiring guideline it’s a look at the future of work.
Lütke’s memo, which he shared publicly on X (formerly Twitter), sets forth an ambitious expectation employees will have to show why they can’t achieve their goals with the help of AI before they ask for additional headcount or resources. He encourages teams to think, “What would this area look like if autonomous AI agents were already part of the team?” This question, he says, can lead to really fun discussions and projects, but its implications are anything but frivolous. This signals a significant change in job dynamics, where competence in AI will be no longer a just tool, but an essential.
The memo also notes that AI has already become a “multiplier” of productivity at Shopify. Lütke added that “I’ve seen many of these people approach implausible tasks, ones we wouldn’t even have chosen to tackle before, with reflexive and brilliant usage of AI to get 100X the work done.” This isn’t desk-thumping, it’s a specific recognition of the ability of AI to reorganize how we function and what we think is possible. Any employee who does not fall in line, however, risks life of the mind, as AI usage will now be integrated into performance reviews and “Rank+Yank” peer reviews, marking them for underperformance.
Shopify’s moves reflect wider trends in the tech world, where companies have increasingly been redirecting resources to AI efforts. According to Layoffs. for the record, 152,000+ roles were cut (over 549 tech cos.) throughout 2024, with at least a couple dozen firms directly attributing some or all of it to integrating AI. Companies such as Cisco, Meta and Amazon have explicitly said that job cuts are freeing up resources for them to invest heavily in AI development. Shopify has already certified themselves as having “terminated” 10,000 employees and expects to even further recessionize this number down to 8100 employees come the end of 2024 as part of a strategic move towards more lean, AI-driven operations.
There is a strong economic logic behind this trend. AI-enabled efficiencies can significantly lower costs while maintaining or even improving output quality. In fact, one consumer finance company, Klarna, replaced 700 call center agents with AI systems completing tasks in less than 20% of the time humans would have taken, saving them $40 million annually. This “cold math” of AI job replacement explains why corporate leaders are leaning into automation, frequently at the cost of human beings.
But Lütke’s memo is not merely about cutting costs; it is about creating an environment of innovation and flexibility. He urges employees to “tinker” with A.I. and integrate it reflexively into their workflows. “Using AI well is a skill that needs to be carefully learned by… using it a lot,” he wrote. That philosophy applies not just internally, but to Shopify’s end users as well, as the company deploys AI tools like the Sidekick chatbot and the “Shopify Magic” automation suite. These very tools are designed to make Shopify entrepreneurship natively AI, paving the way for a future of AI in e-commerce.
The implications of Shopify’s policy are sweeping, not just for its employees but the larger work force. As AI moves further into the core part of what businesses do, the key question is changing from Can AI perform this job? to Convince me why AI can’t. It is this reframing that enables the organization to challenge its employees to reconsider not just their role but to reimagine their role within an evolving landscape in which AI exists as either a competitor but more importantly as a collaborator. For those wanting to remain indispensable, the plan is simple: take advantage of uniquely human skills empathy, creativity, ethical decision and perfect AI tools to increase productivity.
Lütke’s memo also highlights the significance of working together and learning from one another as we move through this transition. He invites employees to share their AI breakthroughs and experiments with co-workers, promoting the idea of communal development. “We’ll learn and adapt together as a team,” he wrote. “We’ll be sharing Ws (and Ls!) with each other as we experiment with new AI capabilities, and we’ll dedicate time to AI integration in our monthly business reviews and product development cycles.”
The wider industry is also paying attention. But some experts, including Scott Galloway, a professor of marketing at NYU’s Stern School of Business, say AI’s contribution to the restructuring of the workforce is underemphasized. “What’s really going on? I believe AI is playing a larger role in layoffs than CEOs are willing to admit,” Galloway wrote in his blog. He anticipates more and more CEOs will soon openly discuss AI’s role in layoffs, presenting it as a way to achieve more efficiency and returns for shareholders.
But the story isn’t completely dystopian. AI will eventually replace some jobs, right, but they will augment other jobs, allowing people to do the same job with fewer resources, Galloway said. To give an example, a copywriter trained on AI tools might be able to generate three times as much content in the same period of time, enabling their team to pursue new initiatives without the need for further hires. This dual narrative of job loss and job augmentation showcases the nuanced relationship between AI and employment.
Shopify’s AI-first hiring policy signals this new reality. It forces employees not just to justify their roles but to redefine them in the face of AI’s capabilities. As Lütke said in his announcement, “Learning together, surrounded by people who also are on their own journey of personal growth and working on worthwhile, meaningful, and hard problems is precisely the environment Shopify was created to provide.” For technologists, business executives and industry observers, this is a dual opportunity and a wake-up call. The future of work is now, and it runs on AI.
