In a recent memo, Shopify CEO Tobias Lütke emphasized that effective use of AI is now a fundamental expectation at the company, urging teams to demonstrate the feasibility of their work through AI before seeking additional headcount.

The AI market is projected to reach $4.8 trillion by 2033, highlighting the rapid adoption of intelligent technology across various industries.

Despite concerns about AI's potential inaccuracies and biases, Lütke believes that it can still benefit a customer-focused company like Shopify by minimizing errors and improving efficiency.

This approach raises concerns about job security for current employees, as companies begin to question the necessity of human roles in the face of AI capabilities.

A United Nations report highlighted that AI could disrupt over 40% of jobs globally, reflecting widespread anxieties about the technology's impact on employment.

The World Economic Forum's Future of Jobs Report 2025 indicates that 41% of companies plan to reduce their workforce by 2030 due to AI automation.

The memo underscores a broader trend towards automation and efficiency in the e-commerce sector, reflecting changing industry dynamics and the necessity for companies to adapt.

Lütke predicts that if this AI-centric approach continues, Shopify could experience annual growth rates of 20 to 40 percent, which he considers achievable.

He noted that AI competency will be integrated into employee performance evaluations and hiring processes, reflecting a shift in corporate culture towards embracing technology-driven solutions.

Lütke reported that AI adoption has led to remarkable productivity increases, with employees achieving up to 100 times their usual output, describing this shift as unprecedented in his tech career.

This aggressive push for AI comes as Shopify faces increasing competition from major e-commerce players like Amazon and WooCommerce, highlighting the necessity of automation to maintain a competitive edge.

The company's investments in AI are intended to enhance customer communication and support merchant onboarding through tools like the 'Sidekick' commerce assistant.