Shopify CEO: teams must prove AI can’t do a task before asking for new hires, resources

Shopify CEO Tobias Lutke with Sam Altman
(Image credit: Shutterstock)

Shopify CEO Tobias Lütke released an internal memo in late March where he said, “Reflexive AI usage is now a baseline expectation at Shopify.” He then shared it completely a few days later on X (formerly Twitter), saying that it’s being leaked anyway, so it might as well come from him.

The memo outlines six things: Everyone is expected to use AI in Shopify; all projects must use AI during the prototyping phase; AI use is included in performance and peer reviews; everyone must share what they learned using AI; teams must first check if something can be done using AI before hiring; and that everyone means including the executive team and Lütke himself.

According to the CEO, “…using AI well is a skill that needs to be carefully learned by… using it a lot.” He has previously said that people should tinker with AI, but he thought that it was too much of a suggestion. So now, he has turned it into an official company policy. Lütke believes that AI is a tool that multiplies productivity by 10x, and when paired with people who “contribute 10x of what was previously thought possible,” then Shopify could get 100x the work done.

“Our job is to figure out what entrepreneurship looks like in a world where AI is universally available. And I intend for us to do the best possible job of that, and to do that I need everyone’s help,” said Lütke. He also adds, “What we need to succeed is our collective sum total skill and ambition at applying our craft, multiplied by AI, for the benefits of our merchants.”

The Shopify CEO says that the e-commerce platform has been growing by 20% to 40% annually — and that its people must also “improve by at least that every year just to re-qualify.” More than that, Lütke thinks that this performance isn’t terribly ambitious anymore, specifically because of the availability of AI tools, and that the company’s top performers actually want this kind of environment.

Many companies are going all-in in AI technologies, especially after investing millions (if not billions) in it. AI can be a useful technology, but it still cannot think like a human. Of course, you should take stock of your available tools (including AI) before bringing someone on board your team. But specifying that people need to prove that AI can’t do a specific role before hiring someone is probably not good for the overall morale of people at any company.

Jowi Morales
Contributing Writer

Jowi Morales is a tech enthusiast with years of experience working in the industry. He’s been writing with several tech publications since 2021, where he’s been interested in tech hardware and consumer electronics.

  • Hooda Thunkett
    Wait...what do these guys do again? I honestly don't remember ever using them for anything.

    "ChatGPT: How do I justify to my boss not using AI for this job and hiring someone to do the work instead?"
    Reply
  • -Fran-
    This fella will have a fun time when the reality hits him.

    Nuance and details are not things AIs are good at, because the input from the humans is never enough in both quality and quantity.

    Regards.
    Reply
  • bit_user
    Classic MBA thinking:
    "The Shopify CEO says that the e-commerce platform has been growing by 20% to 40% annually — and that its people must also “improve by at least that every year just to re-qualify.” More than that, Lütke thinks that this performance isn’t terribly ambitious anymore, specifically because of the availability of AI tools,"This clown is going to burn out his team and create a lot of unhappy customers. Within a year, they'll either have a new CEO or he'll be backpedaling and saying that he was too optimistic.

    Yes, AI is good at some things. It's not equally good at everything, and it takes work to use. That makes this quote a particular knee-slapper:
    "Lütke believes that AI is a tool that multiplies productivity by 10x, and when paired with people who “contribute 10x of what was previously thought possible,” then Shopify could get 100x the work done."
    At first, I thought he was double-counting the 10x. Then, I realized he thinks there are some people who are 10x as productive as others. I've seen people who are maybe 2-3x as productive as the average tech worker, but not 10x. And if you now make them spend all their time trying to coax usable work products from AI, it's going to bog them down to the point where they're not a whole lot more productive than most of their peers, who are doing the same thing.

    The saddest part is that you just know loads of his fellow CEOs are going to jump on this particular bandwagon, if they haven't done so already.

    Lastly, not that I'm in the market for Shopify's services, but I certainly wouldn't go near them at this point. And, if given a choice between a business who uses Shopify vs. one of their competitors, I'm going with the business who's not using Shopify.
    Reply
  • salgado18
    I think AI as a development tool is awesome, and does improve productivity if used right. But I think he went all in too soon. Unless there is a lot of review and tinkering with AI code, the chance that something goes bust is too large for any business. He should do it with one team and analyse the results, before pushing it company-wide.
    Reply
  • SomeoneElse23
    He clearly hasn't "chatted" with the useless AI bots that are appearing all over on websites.

    I've been using Copilot in Visual Studio with some pretty impressive results. However, I have to pay very close attention to what it recommends, as it's regularly 95% accurate, and that last 5% can be easily overlooked.

    It's much like the AI photo generating systems that create cats with 6 legs and birds with 3 legs.
    Reply
  • ravewulf
    Well that's certainly dystopian. Late-stage capitalism hitting hard
    Reply
  • King_V
    and that everyone means including the executive team and Lütke himself.

    I can't be the only one who doesn't believe him when he says this.
    Reply
  • thestryker
    It always astounds me how financial buzzwords end up being like part of a religion to these guys, but then I remember most CEOs sell infinite growth which of course is a myth in the first place. I mostly just hope the smaller businesses who use their services jump ship or are minimally impacted by this.
    Reply
  • DavidLejdar
    In other words, what Shopify can, anyone with an AI can, huh? So... yay for things becoming even more generic?
    Reply
  • Giroro
    AI Can't do the job because AI can't really do much of anything useful, with any reasonable certainty that the end result will be good, or even comprehensible
    Unless Shopify's business model is based around unreadable information-devoid word-salad spam blogs and semi-mangled pictures of celebrities in compromising positions.
    ...But I'm pretty sure Shopify's business is mostly just based on selling scammers tools to create and host unmoderated fake storefronts where they can sell imaginary products at too-good prices and generate fake tracking numbers.

    Maybe AI could help with that, but I'm pretty sure the scammers will just keep doing it themselves, for free -even without shopify.

    https://media.makeameme.org/created/the-solution-is-9b4d1b9662.jpg
    Good Luck proving a negative to a stubborn, irrational dummy.
    Reply