Shopify Chief Executive Tobi Lütke ignited a raging debate that has fired up tech circles with a new policy that obliges teams to prove artificial intelligence cannot perform a certain task before extending hiring requests. The announcement in an internal memo was made public on social media on Monday. It is a sign of increasing the shift in large tech firms’ attitudes toward workforce management in the age of AI.

AI Comes First, Hiring Second

Lütke challenged teams to rethink their working model and wrote in the memo,

“Before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI. What would this area look like if autonomous AI agents were already part of the team? This question can lead to really fun discussions and projects.”

The directive is part of Shopify’s larger strategy to stay lean and agile in a climate of increasing competition and evolving technologies. It demonstrates how swiftly AI has begun to affect management philosophies even in companies that have historically excelled with innovation.

Efficiency by Means of AI

Lütke’s move follows recent declarations from other tech gurus. Klarna’s CEO, Sebastian Siemiatkowski, has been consistent in speaking about how AI would reduce labor needs. He boasted it as the equivalent of performing the work of 700 agents with a customer service chatbot for the company. According to Siemiatkowski, given its current employee size at around 4,000, Klarna is most likely to reduce it to about 2,000.

All tech executives are using AI tools and automation across the board as ways to bring operations closer together, reducing costs and mitigating economic uncertainty. Although, one wouldn’t want to forget the fact that all these bring concerns to job security, workplace morale, and ethical considerations with regard to the speed at which automation is being accelerated.

AI-first Mandate

By the end of 2024, Shopify had some 8,100 employees, but this figure was down from a much larger number of people in previous years following several rounds of layoffs. In 2023, 20% of the workforce was trimmed. Earlier this year, the company reportedly reduced again, this time going after its customer service division, according to Business Insider. Now, Lütke’s AI-first mandate suggests the organization might continue to cut down its ranks, even as it advertises itself as a frontrunner in innovation in digital commerce.

Real-Time Workplace Transformation

According to a report by the United Nations Conference on Trade and Development, AI may disrupt over 40% of all jobs globally. While there continues to be debate on its long-term economic benefits, the short-term effects of AI are obviously being felt across industries, especially concerning customer service, logistics, and administrative work.

For Shopify, the question is not only what AI can do but also how far it should go in replacing human judgment. Lütke’s perspective may gain operational advantages, yet it also feeds employee expectations that staff now have to justify their existence in an ever more automated workplace. As the tech industry leans into AI-driven efficiency, Shopify’s internal policy may either be adopted by others as a model, or be warned against as an example of what not to do.