Shopify memo links AI to performance

This signals a "shift in how organisations must think about productivity and performance", said HowNow's CEO, Nelson Sivalingam

Tobi Lütke, CEO of the multinational e-commerce company Shopify, instructed staff to prove that a job can’t be done using AI, before requesting new staff or resources.

In a leaked memo to Shopify staff, which Lütke then published on X on Monday (7 April), Lütke stated that before asking for resources or new hires, “teams must demonstrate why they cannot get what they want done using AI.”

Lütke emphasised that AI use will now be a “fundamental expectation” of all staff at the company.

Managers at the e-commerce platform will also be required to add AI usage questions to performance and peer-review questionnaires, to “check up on employee progress", the memo stated. 

Olive Turon, head of people and culture at pre-employment testing platform TestGorilla, disagrees that performance should be linked with AI use.

She told HR magazine: "While AI adoption is accelerating, with many companies starting to integrate AI tools into their everyday tasks, it’s still in its early stages. Many employees are still experimenting in an ad-hoc way without clear guidance or sufficient training.

"Measuring performance without clear expectations is unfair. Leaders must set clear parameters and create a supportive environment to ensure employees understand what AI integration looks like in their specific role before linking performance to AI use. Only then can measuring performance against AI adoption be truly beneficial for both employees and business goals.”


Read more: Workplace AI policies: Does your company need them?


For Nelson Sivalingam, CEO of knowledge platform HowNow, Lütke's memo is about encouraging staff to think about the way they work, rather than how hard they're working.

Speaking to HR magazine, he said: “Tobi’s stance may seem provocative, but it signals a fundamental shift in how organisations must think about productivity and performance in the age of AI. Using AI is no longer a future skill. By tying AI use to performance and resourcing decisions, Shopify is pushing teams to be more intentional about how they work, not just how hard they work.

“The real challenge and opportunity for HR is to ensure this doesn’t become a blunt instrument. Adoption alone isn’t enough. Leaders need to understand how AI is enhancing skills, speeding up execution, and freeing people to focus on higher-value, human-centred work.”

In his memo, Lütke stated: “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.

“I’ve seen many of these people approach implausible tasks, ones we wouldn’t even have chosen to tackle before, with reflexive and brilliant usage of AI to get 100X the work done.”


Read more: How should employers assess performance during probation?


Lütke's suggestion of making additional resources dependent on whether AI can used, could be counterproductive, said Eyal Ben Cohen, CEO of background screening check providers Verifile. 

Cohen told HR magazine: “Leveraging AI to optimise resources is a forward-thinking strategy. However, making additional resources contingent upon proving AI's insufficiency could be counterproductive. Such a policy might inadvertently stifle innovation and place undue pressure on employees to fit AI into scenarios where it may not be the most suitable solution.

“A more effective approach might involve providing teams with the autonomy to identify areas where AI can genuinely add value, supported by adequate resources to implement these solutions. This fosters a culture of innovation and ensures that AI is utilised where it offers the most benefit.​”

Philippe Masson, CEO of time management strategies provider Avilio, explained that AI adoption should be part of a longer-term investment within a company. 

Speaking to HR magazine, he said: “AI adoption needs to be part of a thoughtful redesign of processes, not just a means of giving people more work they can’t manage effectively – nor should it be used as a performance metric. It’s true that businesses ignoring AI risk falling behind, but leaders also need to consider how AI affects motivation, focus and purpose.

“Indeed, employees still need to feel valued, supported, and trusted – but the use of AI can take away people’s job satisfaction and sense of accomplishment.”