Shopify Ties AI Usage to Performance Reviews Amid 100x Productivity Surge

Shopify CEO Tobias Lütke, in a post on X, shared an internal memo that he claimed was being leaked online. The memo, titled ‘Reflexive AI usage is now a baseline expectation at Shopify’, emphasised that teams seeking to increase headcount must justify why AI cannot fulfil the required tasks.

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

Lütke praised AI’s transformative potential, calling it the “most rapid shift to how work is done" in his career. He urged employees to embrace AI as a partner in various functions, including coding, research, and tutoring or criticising. He admitted that even his own AI usage is just "scratching the surface".

He mentioned that this new AI-first approach will be integrated into Shopify's performance management. The memo further revealed that AI usage will be included in employee performance and peer review questionnaires, with an expectation that staff actively learn and share their AI proficiency with colleagues.

The CEO stressed that this isn’t merely a suggestion, but a fundamental requirement, aligned with Shopify’s core values of continuous learning and embracing change. He cautioned that adapting to and leveraging AI is crucial for individual and company-wide success. Without it, one may not be able to make progress.

Lütke believes that AI is a multiplier, enabling employees to achieve significantly higher output. He stated that some employees have improved their output by 10 times with the help of AI. He also shared instances of employees trying their hands at completely new experiences, with productivity increasing 100 times through AI adoption.

These numbers may not be entirely surprising, considering AI has been helping developers boost productivity by 10 times.

The move will likely spark discussions across the tech industry about the future of work and the fundamental skills required in an AI-powered era.