The Shopify AI Memo and Its Ripple Effects

Shopify (Tobi Lütke) – Mandating AI as “Non-Optional”

On April 7, 2025, Shopify CEO Tobi Lütke sent an internal memo (which he later shared publicly) declaring that AI proficiency is now mandatory across the company [1]. In the memo titled “AI usage is now a baseline expectation,” Lütke outlined sweeping changes to ingrain AI into Shopify’s culture:

AI as Baseline Expectation: “Reflexive AI usage is now a baseline expectation at Shopify,” Lütke wrote, making it clear that using AI effectively is required of every employee (including himself and executives) [1][2]. Opting out is not considered viable – “I don’t think it’s feasible to opt out… I cannot see this working out today, and definitely not tomorrow,” he warned [3].
Workflow Integration: All projects must incorporate AI during prototyping (“AI must be part of your GSD [Get Stuff Done] Prototype phase” [4]), and teams must first attempt AI solutions. Employees now have to justify why a task cannot be done with AI before requesting more resources or headcount [1]. In Lütke’s words, “Before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI.” [5]
Performance & Hiring Criteria: AI competency will be formally integrated into performance reviews and peer feedback. Shopify is adding AI-usage questions to review questionnaires [3], making mastery of AI a factor in evaluations. Likewise, AI skills are now weighed in hiring decisions for new recruits [1]. Lütke explicitly ties career progression to AI adoption, arguing that “stagnation is slow-motion failure” and those who don’t continually improve with AI will fall behind [1][3].

Direct quote: “Using AI effectively is now a fundamental expectation of everyone at Shopify,” Lütke wrote, adding that this mandate applies “to me as well as everyone else.” He concluded with a rallying call: “AI will totally change Shopify, our work, and the rest of our lives… We’re all in on this.” [6]. These changes marked a major internal policy shift, positioning AI as core to every role rather than just a tool [7][8].

Fiverr (Micha Kaufman) – “AI Is Coming for Your Job” Ultimatum

Micha Kaufman, CEO of freelance marketplace Fiverr, issued a starkly worded internal memo (shared around April 7–8, 2025) that mirrors Shopify’s push. Kaufman’s email – later posted publicly – served as a wake-up call about AI’s impact on jobs [9][10]. Key points from Fiverr’s internal AI directive include:

Mandatory Upskilling for All Roles: Kaufman warned every team member that “AI is coming for your jobs. Heck, it’s coming for my job too. This is a wake-up call.” [10] No role is exempt: “It does not matter if you are a programmer, designer, product manager, data scientist, lawyer, customer support rep, salesperson, or a finance person — AI is coming for you,” his memo stated bluntly [11]. He urged employees to adapt fast or be left behind, underscoring that staying at the forefront of AI is critical to one’s continued career in the industry [11].
Use AI Before Hiring More People: In a tone very similar to Lütke’s, Kaufman told staff to get involved in making the organization more efficient with AI tools before thinking of expanding teams [11]. “It does not make sense to hire more people before we learn how to do more with what we have,” he wrote, effectively announcing a hiring freeze until existing employees fully leverage AI [12]. In practice, managers must exhaust AI solutions to increase productivity rather than immediately seeking new hires.
Radical Candor on Job Security: Kaufman prefaced his message by saying he believes in “radical candor” – not sugar-coating the reality of technological disruption [10]. “I am not trying to scare you… I am talking about your ability to stay in your profession in the industry,” he explained, framing AI mastery as essential for long-term employability [11]. By highlighting that even his own CEO role is vulnerable to AI, Kaufman emphasized a culture where everyone, top to bottom, must elevate their skills.

Kaufman’s memo, titled along the lines of “AI is coming for your job,” was shared just hours around the time of Shopify’s leak, showing a unified front among tech CEOs [12]. Both Lütke and Kaufman explicitly linked team growth and individual advancement to effective AI use, signaling to employees that embracing AI isn’t optional but necessary for survival [12][11].

Preface (Tommie Lo) – Integrating AI and Continuous Training by Design

It’s not just North American tech companies – leaders in other industries and regions are also reshaping internal policies inspired by this AI mandate trend. Tommie Lo, founder and CEO of Preface (an education technology and training company based in Hong Kong), publicly echoed Lütke’s philosophy and revealed how his organization is baking AI into daily operations and talent development. In an interview, Lo agreed that AI fluency is now “a fundamental expectation” for modern companies [13] and described the changes at Preface:

AI in Daily Workflow: “Internally, we integrate AI tools into our daily activities across all disciplines,” Lo said, highlighting that every team (from marketing and finance to design and operations) is expected to leverage AI in their work processes [13]. This reflects a conscious internal policy at Preface to treat AI as a teammate in every department, not just an occasional tool.
Ongoing AI Training & Knowledge Sharing: Preface instituted regular “Lunch & Learn” training sessions company-wide to keep staff up to speed on the latest AI developments and how to apply them on the job [13]. Lo describes a culture of continuous learning similar to Shopify’s self-directed learning mandate. The company actively encourages employees to share effective AI use cases and new techniques, fostering peer-to-peer learning. This ensures the workforce constantly upgrades its AI skills together.
Re-Skilling and Hiring for Adaptability: “Our approach mirrors Shopify’s ethos: we prioritize re-skilling teams to harness AI’s potential,” Lo noted [13]. Preface focuses on upskilling existing staff to improve efficiency with generative AI and automation, rather than immediately hiring outsiders. When they do hire, curiosity and adaptability are top qualities sought. “We also prioritize hiring for adaptability… Retention hinges on fostering a culture that encourages AI experimentation and knowledge-sharing,” Lo explained [13]. In short, the company’s talent management has shifted to favor those who can continuously learn and incorporate AI in their roles.

Lo explicitly credits the mindset behind Shopify’s memo: “I resonate with Tobi Lütke when he says AI is now a ‘fundamental expectation.’ In today’s tech landscape, opting out of AI… isn’t an option. To quote Lütke, ‘If we’re not climbing, we’re sliding.’” [13] This underscores that Preface’s internal initiatives – from routine AI trainings to requiring AI in every workflow – are inspired by the same belief that embracing AI is critical to staying relevant. Leaders in fields like education are thus implementing AI adoption programs, training, and cultural shifts analogous to those at Shopify, affirming that this trend spans different industries.

Other Notable Reactions and Trends

Lütke’s and Kaufman’s high-profile directives have set a precedent that is reverberating across sectors. While some CEOs publicly praised Shopify’s stance (venture investor Reid Hoffman lauded Lütke’s memo as forward-thinking [14]), others are quietly following suit by reviewing their own internal AI policies. Early evidence suggests a broader shift in 2025 toward “AI-first” workplace cultures: leaders are increasingly expecting employees to incorporate AI into everyday tasks and are reconsidering growth plans in light of AI capabilities [11][12]. For example, companies in enterprise software have begun adding AI proficiency to employee evaluations and asking teams to pilot AI solutions before new budget approvals, according to industry chatter. And even before this memo, some firms had started limiting hiring in areas AI could manage – IBM’s CEO had noted plans to pause hiring for certain back-office roles as AI matures [15][16]. Now, after April 2025, that concept has gained mainstream validation from Shopify and others.

In summary, internal operational shifts catalyzed by AI – once sporadic – are quickly becoming standard practice, led from the top. In the wake of Tobi Lütke’s memo, CEOs in various industries (from e-commerce and gig platforms to education tech) have introduced concrete internal changes: making AI usage non-negotiable, tying performance and growth to AI skills, adjusting hiring and resource allocation policies, and launching training initiatives to bring their entire workforce up to speed. The message across these firsthand accounts is consistent and clear: adapt to AI internally at all levels, or risk being left behind [8][11].