Shopify CEO: justify new hires by proving AI can't do the job better
A hot potato: In another example of the impact AI is having on jobs, Shopify's CEO has issued a warning to the company's managers: show that AI can't do the job better than a human before hiring new workers. Shopify previously laid off staff after it started using generative AI to complete some customer support tasks. Like many CEOs, Shopify boss Tobi Lütke has a passion for using AI in the workforce. In an internal memo to employees sent last month titled AI usage is now a baseline expectation, Lütke writes that before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI. "What would this area look like if autonomous AI agents were already part of the team?" Lütke wrote in the memo, which he published on X after it was leaked. "This question can lead to really fun discussions and projects." The promise of increased productivity and fewer workers leaves many CEOs salivating at the prospect of implementing AI into their companies. Lütke is certainly an advocate, waxing lyrical about the technology. Not only does the memo state that using AI is essentially mandatory, but its use will also become part of Shopify's performance and peer review questionnaire. Lütke adds that the AI directive applies to everyone at Shopify, even the CEO himself. Using AI effectively is "now a fundamental expectation of everyone at Shopify," he wrote. // Related Stories "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 says. E-commerce platform Shopify helps people and businesses create and manage online stores, covering everything from initial storefront creation and selling to marketing and analysis. The company has leaned heavily into generative AI tools in recent years. Shopify Magic, its suite of generative AI features built directly into the platform, offers features such as AI-powered product descriptions. There's also Sidekick, a conversational AI built into the admin dashboard. As with many other firms, it appears the more Shopify spends on AI, the more jobs are eliminated. The company laid off 20% of its staff, or around 1,500 people, in December 2023, the same year it started using genAI for some customer service tasks. It also reduced its workforce by 14% in 2022. Masthead: Open Grid Scheduler / Grid Engine
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