A leaked internal memo from Shopify CEO Tobi Lütke has pulled back the curtain on the company’s aggressive shift toward artificial intelligence, and the message is crystal clear: AI is no longer optional—it’s the new starting point.
Originally meant for internal eyes only, the memo outlined a bold stance that’s now public: Shopify employees must exhaust AI capabilities before requesting additional headcount or resources. The core directive? “Hire an AI before you hire a human.”
Lütke Confirms Memo, Doubles Down on AI Vision
After the memo began making the rounds on social media, Lütke didn’t wait to respond. Instead, he took control of the narrative by publicly confirming the document on X (formerly Twitter).
“Context: This is a Shopify internal memo that I shared here because it was in the process of being leaked and (presumably) shown in bad faith,” Lütke posted.
Rather than backpedal, he leaned into the message, adding: “If you’re not using AI by default at Shopify, you’re behind.”
This isn’t theory—it’s the new operating manual at Shopify.
AI First, Everything Else Second
The internal memo, titled “AI usage is now a baseline expectation,” sets a clear standard. Before seeking new hires, teams must first prove they’ve used AI to solve the problem.
“Stagnation is almost certain, and stagnation is slow-motion failure,” Lütke wrote. “If you’re not climbing, you’re sliding.”
That quote captures Shopify’s evolving mindset. AI has moved from being a helpful experiment to a core business foundation. The company is no longer dabbling—it’s doubling down.
From Encouragement to Obligation
What was once a suggestion is now a rule: AI usage is required.
Employees must incorporate tools like Copilot, Claude, Cursor, and internal systems such as chat.shopify.io and Proxy into their daily workflows. Lütke calls AI a “multiplier”—capable of turning a strong individual into a high-impact team.
This cultural shift is already reshaping workflows, from how prototypes are built to how performance is reviewed. Being AI-proficient isn’t a bonus anymore—it’s a job requirement. And those who know how to write strong prompts will rise fastest.
Quick Hits: What the Memo Really Says
One X user broke the memo into 10 powerful takeaways. Here’s what they highlight:
- “Hire an AI before you hire a human.”
- AI fluency is now the expected baseline for all employees.
- AI agents are being treated like team members.
- Prompting isn’t just a skill—it’s becoming a superpower.
- AI usage is tracked; it will likely be productized.
- AI-led prototyping is the new norm—even at billion-dollar scale.
- Bots are making their way into org charts.
- AI literacy now rivals coding literacy.
- AI stands alongside backend, frontend, and design as core infrastructure.
- Productivity per person must grow—AI is the lever to get there.
Top-Down Mandate
The directive doesn’t just apply to junior staff. Lütke made it clear: “This applies to all of us—including me and the executive team.”
To prove the point, he shared that AI agents wrote his talk for last year’s Shopify Summit. And across the company, teams embracing AI are already outperforming expectations. Quiet performers are stepping up—not because they work longer hours, but because they know how to leverage AI better than others.
The Bigger Signal: Shopify Is Redefining Work
This memo isn’t a tweak. It’s a wholesale shift in how Shopify operates.
Want more hands on deck? Prove AI can’t do it. Launching a product? Start with AI. Evaluating performance? Demonstrate effective AI use.
Lütke even likened the pace of change to the Red Queen’s race in Alice in Wonderland—you have to run just to stay in the same place. To keep up with Shopify’s velocity, everyone must upskill continuously. And yes, that includes the CEO.
What It Means for the Tech World
Shopify’s new mantra—AI before humans—is a clear call to action for the rest of the tech industry. If a $100 billion company is treating AI as foundational infrastructure, other organizations may not be far behind.
This shift doesn’t just influence hiring—it affects product design, team structures, and company culture. Lütke’s final words in the memo offered a rallying cry:
“Our job is to figure out what entrepreneurship looks like in a world where AI is universally available.”
At Shopify, AI isn’t just a tool anymore. It’s the new coworker. And chances are, that trend won’t stay contained to one company.
