Shopify CEO Tobi Lutke Says Employees Must Prove AI Can't Handle Their Tasks Before Requesting More Headcount

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Shopify Inc. SHOP CEO Tobi Lutke has introduced a new policy requiring employees to demonstrate that their tasks cannot be accomplished using AI before requesting additional staff.

What Happened: In a memo shared with staff and posted to X, formerly Twitter, on Monday, Lutke outlined a shift in Shopify's approach to hiring and resource allocation.

The memo emphasized that employees should consider AI as a tool for productivity before asking for more human resources.

"What would this area look like if autonomous AI agents were already part of the team?" Lutke asked in the memo. "This question can lead to really fun discussions and projects."

See Also: Shopify Gears Up For Q4 Print; Here Are The Recent Forecast Changes From Wall Street’s Most Accurate Analysts

He further stressed that using AI has been a "multiplier" for productivity, helping employees achieve results that were once considered impossible or too daunting to attempt.

Lutke highlighted that AI usage would now be incorporated into performance reviews, signaling the company’s push to embed artificial intelligence into daily tasks across all teams. 

"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," Lutke wrote.

Why It Matters: The directive comes as tech companies increasingly embrace AI, with Shopify rolling out AI-powered tools such as the "Sidekick" chatbot and the automation suite "Shopify Magic" to assist its merchants.

In February, Shopify reported fourth-quarter revenue of $2.81 billion, marking a 31% year-over-year increase and surpassing analysts' expectations of $2.73 billion.

Price Action: Shopify’s stock has declined about 26.70% year-to-date, ending Monday's session at $78.82 after gaining 2.51%, according to Benzinga Pro data.

Benzinga Edge Stock Rankings gives Shopify (SHOP) a strong growth score of 95.11%. Curious how it stacks up against other stocks? Click here for the full analysis.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Shutterstock

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