Shopify’s CEO, Tobi Lütke, has introduced a significant policy shift in a recent employee memo, wherein teams are now required to justify why AI cannot perform a task before requesting additional personnel and resources.

As outlined in the memo, which Lütke publicly shared on social media, “teams must demonstrate why they cannot accomplish their objectives using AI” before seeking more headcount and resources. He added, “Consider what this area would look like if autonomous AI agents were already an integral part of the team. This line of inquiry can lead to engaging discussions and projects.”

The notion that AI and autonomous agents can help maintain a leaner workforce at Shopify is likely to be contentious, given the widespread concerns surrounding the impact of AI on job security. A recent report from the United Nations’ Trade and Development organization estimates that AI has the potential to disrupt over 40% of global job roles.

However, Lütke is not the only tech industry leader exploring the potential of AI to drive efficiency gains. Other CEOs have expressed similar sentiments regarding the role of AI in streamlining operations.

Sebastian Siemiatkowski, CEO of Klarna, has highlighted the capabilities of Klarna’s AI chatbot, which reportedly performs the work equivalent to 700 customer service agents. He has also suggested that AI could enable Klarna to reduce its workforce to approximately 2,000 employees, down from its current staff of around 4,000.

As of 2024, Shopify reported having around 8,100 employees. The company had previously laid off 20% of its staff in 2023. Additionally, in January, Shopify reportedly implemented layoffs in its customer service division, as per a report by Business Insider.