This past week, Shopify CEO Tobi Lutke sent a company-wide memo that should be required reading for every business leader. His message was crystal clear: AI isn't just a tool for competitive advantage – it's now the baseline expectation.
"AI usage is now a baseline expectation at Shopify," Lutke wrote, directly challenging his entire organization to adapt or risk "stagnation, slow-motion failure."
Lutke’s New AI Rules
Lutke isn't just encouraging AI adoption – he's mandating it:
Teams must prove why they can't use AI to meet goals before requesting more staff
AI exploration must dominate the prototype phase of any project
AI usage will be evaluated in performance reviews
Everyone must comply – including executives (CEO included)
Why This Matters
I believe this memo signals a turning point for how businesses approach AI. Shopify has recognized that AI isn't just a competitive advantage but a fundamental necessity.
“Our job is to figure out what entrepreneurship looks like in a world where AI is universally available.The call to tinker with it was the right one, but it was too much of a suggestion. This is what I want to change here today.”
Lutke describes AI as a "10X" tool, allowing his best employees to tackle "implausible tasks" they "wouldn't even have attempted before" and get "100X the work done."
Five Actions for Business Leaders
Here are five concrete steps to incorporate AI in your business, inspired by Lutke:
Make AI usage mandatory. "I don't think it's feasible to opt out of learning the skill of applying AI in your craft."
Use AI for faster prototyping. AI "dramatically accelerates" creating something teammates can "look at, use, and reason about in a fraction of the time it used to take."
Include AI in performance reviews. Make it clear that using AI effectively is part of everyone's job.
Create knowledge-sharing mechanisms. Shopify uses dedicated Slack channels like #revenue-ai-use-cases and #ai-centaurs where employees share successful prompts and approaches.
Reframe resource requests. Before approving new headcount, ask: "What would this look like if AI agents were already part of the team?"
What resonates with me most is Lutke's message about continuous growth: "If you're not climbing, you're sliding." At Thoughts from the DataFront, we've discussed at length that the businesses that thrive won't be those with the most advanced AI – they'll be those who make AI usage a fundamental part of their culture and operations.
As the saying goes, the best time to plant a tree was 40 years ago, but the second best time is today. Your window to gain competitive advantage from AI is rapidly closing. Soon, it won't be a differentiator – it will be the baseline expectation for simply staying in the game.
Those are my Thoughts From the DataFront
Max
Read Lutke's full memo here