AI first, humans second? Inside Shopify’s bold new hiring policy

Photo for illustrative purposes only.

Imagine walking into a job interview and realizing your competition isn’t another human – it’s an AI tool. Sounds like science fiction, right?

Well, at Shopify, this scenario is edging closer to reality. The e-commerce giant has rolled out a new hiring policy that seemingly puts artificial intelligence first and humans second. 

In a recent memo to employees (which Shopify CEO Tobi Lütke even shared publicly on X, formerly Twitter), the company made its stance crystal clear: Before any team can hire a new person, they must prove that an AI can’t do the job instead.

Why such a bold move? And what does it mean for the rest of us – our careers, our workplace culture, even our mindset about work? 

Let’s break down Shopify’s AI-first hiring policy and the questions this raises about the future of hiring.

Shopify’s new AI-first hiring policy

Shopify isn’t shy about why it’s doing this. In his memo, Lütke highlighted that using AI effectively is now a “fundamental expectation” for every employee at Shopify. 

In other words, AI proficiency is no longer a bonus skill – it’s a baseline requirement. The memo, which Lütke posted on X to share company-wide, went viral and sparked a firestorm of debate. Why? Perhaps because of one spicy sentence:

“Before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI.”

That single line strikes at something many CEOs have hinted at but rarely say outright. Shopify is essentially asking: Have you tried an AI solution for this task first? If not, you’re not getting approval to hire a human.

Lütke’s reasoning seems to come from seeing AI’s potential first-hand. He even encouraged teams to imagine what their department would look like “if autonomous AI agents were already part of the team”, calling this a thought experiment that could lead to “really fun discussions and projects”. 

In short, Shopify is all in on weaving AI into daily work. The company is so serious about it that it’s integrating AI usage into performance reviews, making reflexive AI use a “baseline expectation”. 

If you work at Shopify, it seems you’re now expected to use AI as naturally as email or Slack.

Voices from the top

Shopify’s leadership isn’t tip-toeing around the implications. In the memo, Lütke put it bluntly: “AI will totally change Shopify, our work, and the rest of our lives.” This sweeping statement gives a sense of how transformational he believes this technology will be. 

From Shopify’s perspective, embracing AI is about amplifying human potential. “What we need to succeed is our collective sum total skill and ambition at applying our craft, multiplied by AI, for the benefit of our merchants,” Lütke explained. In other words, humans plus AI together can achieve far more – a multiplicative effect on productivity and creativity.

However, he’s also unapologetic about the flipside: if an AI can handle the workload, that will affect hiring. This sentiment isn’t just theoretical. 

As widely noted, Shopify’s workforce has actually shrunk in recent years (from about 11,600 employees in late 2022 to roughly 8,100 by the end of 2024), though those cuts weren’t officially linked to AI. Now, with AI tools readily available, leadership wants to ensure every new hire is truly necessary. Why hire an extra pair of hands if a digital “colleague” could do the heavy lifting?

Other tech leaders are voicing similar ideas. The CEO of freelance platform Fiverr, Micha Kaufman, recently told his employees something eerily akin to Shopify’s mandate. In a candid note, Kaufman admitted, “AI is coming for your jobs… Heck, it’s coming for my job too. This is a wake-up call.” 

That kind of radical candor – calling reality as it is – echoes Lütke’s approach. It seems a new chorus is emerging among forward-looking CEOs: embrace AI or fall behind.

Psychological and cultural implications at work

Beyond the boardroom and hiring committees, Shopify’s policy ripples into the psychological fabric of the workplace. 

Think about the mindset shift this requires from employees. Where a worker might once have thought, “I need an extra team member to share this workload,” now they’re nudged to think, “How can I automate or augment this with AI?” 

For some, this is exciting – a chance to shed mundane tasks and play with cutting-edge tools. For others, it can be unnerving. A question looms: if I don’t leverage AI enough, am I putting my own job at risk?

Sudden shifts like these can trigger anxiety, but they can also spark growth. It largely depends on how the change is communicated and supported. Shopify’s approach has been one of radical transparency. That candor can be bracing, but it also respects employees’ ability to adapt. 

In fact, expert observers like Sharon Goldman worry more about companies that aren’t talking about these changes. “I worry that CEOs, by keeping quiet, are not preparing their employees, and the public, for what’s quickly coming down the pike,” she writes. At least at Shopify, there’s no illusion about what’s expected – AI is on the table, and everyone needs to grab a seat.

Culturally, an AI-first mindset can reshape company values. It places a premium on experimentation, agility, and continuous learning. Teams might celebrate a clever automation hack the same way they’d celebrate landing a big client. 

The definition of collaboration also broadens: it’s no longer just about humans working well together, but also humans working smartly with machines. Some longtime employees might find this shift challenging – especially if they’ve done things a certain way for decades. Conversely, younger employees or those naturally tech-savvy might thrive and take on mentorship roles, teaching peers how to integrate AI into projects.

There’s also an interesting cultural riddle: How do you maintain a “human” company culture when non-human agents are increasingly in the mix? Shopify will likely find out. 

Perhaps AI taking over grunt work will free up humans to have more creative brainstorming sessions or deeper client relationships – very human activities. But if every decision is run through an AI or every idea needs an AI stamp of approval, some fear work could become impersonal or overly data-driven. The key, I suppose, will be balance. 

Career implications: navigating an AI-first job market

For professionals and job seekers, Shopify’s bold policy is a clear signal about where the job market is heading. The message? Upgrade your skills and mindset, or risk being left behind. It might sound harsh, but there’s a silver lining for those willing to adapt.

Firstly, technical savvy – especially in AI – is no longer optional for many roles. If you’re an aspiring marketer, for example, you might be expected to know how to use AI tools to draft copy or analyze customer data. If you’re an entry-level programmer, familiarity with AI code assistants could be assumed. The sooner you can add “AI competency” to your resume (and back it up with real abilities), the better. Shopify’s own team evaluations will now include questions about how employees use AI, which suggests future job interviews elsewhere might ask similar questions: “Tell us how you’ve used AI to solve a problem.”

Secondly, career paths may look different. Traditionally, an entry-level analyst might spend hours in spreadsheets, or a junior lawyer might review contracts for basic errors – tasks that AI can do pretty well now. Those kinds of “apprenticeship” tasks were how newbies learned the ropes. If AI takes them over, where does that leave newcomers? Might junior roles still exist but focus on managing or improving AI outputs? For instance, instead of manually sorting data, an analyst might spend time feeding the right data to an AI system and interpreting its output, adding human context where needed.

For mid-career folks, the challenge is likely staying relevant. It might involve shifting into more strategic work or learning to supervise the AI that’s partially taking over your old duties.

On a more optimistic note, entirely new career opportunities are emerging from this AI push. New jobs like AI ethics officers, prompt engineers (people who craft the questions/prompts to get the best answers from AI), and data curators have been created. These jobs hardly existed a few years ago. Now, they’re becoming critical in organizations that use AI pervasively. 

Lastly, we should talk about the mindset needed for individuals to thrive here. A fixed mindset (one that resists change and sticks to old ways) will be dangerous. A growth mindset – viewing this as an opportunity to grow and learn – will serve people well. The AI revolution might be like computers in the 80s and 90s. Yes, it’s disruptive and sometimes intimidating. But it can also supercharge your productivity and make your job more interesting by offloading boring tasks. 

The big questions for the future 

Shopify’s AI-centric policy raises some big, juicy questions that don’t have clear answers yet. We think these questions are worth pondering:

  • Will “AI literacy” become as important as basic literacy? If every job now calls for knowing how to use AI, we might see a day when resumes list proficiency in various AI platforms similar to how they list Microsoft Office skills today. Does that become a default expectation for all knowledge workers?
  • How will companies balance efficiency with empathy? It’s efficient to use an AI whenever possible. But companies are made of people, and people need mentorship, engagement, and a sense of purpose. If entry-level jobs shrink, how do we train the next generation? Will companies invest more in internal training programs to upskill their hires in AI and beyond? Could we see a resurgence of apprenticeship-style models but with a tech twist?
  • What happens to the human in human resources? If managers must justify each new person against an AI alternative, HR’s role might shift to being more strategic about where humans truly add value. Recruiting could become hyper-focused on finding talent that complements AI rather than competes with it.
  • Are we ready for AI “coworkers” and even AI “bosses”? Working alongside AI tools is one thing; taking orders from an AI is another. Shopify’s policy doesn’t suggest AI will manage people, but in some industries, algorithmic management is creeping in (think gig economy platforms). Will the future of work involve reporting to a machine for some? And how will that sit with us psychologically and ethically?
  • How do we measure success and performance in an AI-first workplace? If an AI does 50% of a task and a human does the rest, who gets the credit (or blame) for the outcome? Companies will need clever ways to assess an employee’s contribution alongside their AI tools. It might even flip the script on productivity – maybe the best employees won’t be the ones who work the longest hours, but those who get the most strategic help from AI.

These questions don’t have straightforward answers yet, but they’re on the minds of executives, employees, and researchers alike.

Putting it all together

Shopify’s bold AI-first hiring policy is more than just one company’s experiment – it’s a sign of the times. By asking teams to “prove AI can’t do it” before bringing on a new human, Shopify has laid down a gauntlet to the business world: How far are we willing to go in leveraging technology to drive efficiency? The conversation is no longer academic. It’s here, affecting real job postings and organizational charts in real time.

On one hand, this approach promises possible unprecedented productivity and innovation, freeing people from mundane work and encouraging them to amplify their talents with powerful tools. It’s a call to action for employees to level up, for job seekers to future-proof their skills, and for companies to rethink how they allocate human talent. In a best-case scenario, AI handles the drudgery, while humans focus on creative, strategic, and high-empathy tasks – the work that truly lights us up and adds unique value.

On the other hand, it raises valid concerns and challenges. How do we prevent an AI-first mentality from unintentionally sidelining certain groups or creating new biases? Are we doing enough to prepare and protect workers through this transition – not just with training, but also emotional and career support? And as we charge into this new era, can we ensure that human dignity and purpose don’t get lost in a sea of algorithms?

In the end, Shopify’s policy might be seen as trailblazing or provocative, depending on your viewpoint. But it has undoubtedly succeeded in getting everyone’s attention. Around virtual water coolers and LinkedIn threads, people are asking: Is this the future of hiring? Perhaps the truth is, it’s the present of hiring – and the rest of us are just catching up.

As we navigate this shift, staying curious and adaptable is key. Whether you’re a CEO deciding on your next hire or an employee figuring out how to stay indispensable, the principle remains the same: embrace learning and change. AI may be a formidable new player on the team, but humans still hold the playbook – for now. By writing the next chapter together (humans and AIs in collaboration), we might just find innovative ways to work that we never imagined possible.

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