A leaked internal memo from Shopify CEO Tobias Lütke has quietly gone viral in executive circles — and for good reason. It is arguably one of the clearest expressions to date of what CEO leadership should look like in the age of AI.

In the memo, Lütke states plainly, “Using AI effectively is now a fundamental expectation of everyone at Shopify.” Not just developers. Not just analysts. Everyone.

This is not some passing trend or another bullet point on an IT roadmap. It is a cultural shift. It’s a new way of working and thinking — one that Shopify is now weaving into its performance reviews, product development cycles and company-wide expectations. In the memo, Lütke makes the following proclamations:

  • AI Proficiency Is Now Mandatory: Using AI effectively is no longer optional at Shopify — it is a baseline expectation for all employees, regardless of role. This marks a significant cultural and operational shift.
  • Non-Use of AI Requires Justification. Employees must demonstrate why AI cannot be used before requesting additional resources (e.g., more staff or time). Stagnation is framed as failure — employees are encouraged to continuously upskill and experiment with AI.
  • AI in Product Development. AI must be integrated into the early stages (prototype phase) of all GSD (get sh** done) projects. This approach is intended to dramatically accelerate learning, iteration and team collaboration.
  • Performance Accountability. Shopify is adding AI usage to its performance and peer review criteria, making AI adoption part of how employees are evaluated and rewarded, including leadership and executive teams.

The tone of the memo is direct and urgent. Lütke asserts that failing to adopt AI now will lead to stagnation and decline, emphasizing that employees must keep climbing — or risk sliding backward.

“This exemplifies what CEO leadership looks like in the Age of AI," says Paul Baier, CEO of GAI Insights and Forbes AI contributor. “CEOs must adapt to leading organizations of, say, 1,000 employees empowered with 5,000 AI assistants.”

AI Is a Business Mindset, Not a Technology Stack

What makes the Shopify memo so compelling is its bluntness. Lütke doesn’t politely suggest employees try using AI. He doesn’t offer training modules or optional tools. He says adapt or fall behind: “Stagnation is slow-motion failure. If you're not climbing, you're sliding.”

Lütke’s memo also reflects a broader reality: AI has already shifted from experiment to expectation. The companies that thrive in this new environment will be those whose CEOs stop treating AI as an initiative and start treating it as a core operating model.

This isn’t bravado, attention-seeking or trying to be the “cool kid” in the industry. It’s realism. For organizations in the crucible of generative AI disruption — media, retail, finance, logistics — awareness and experimentation are no longer enough. Adaptation is the new mandate and must start at the top.

Other CEOs Are Quietly Making AI Everyone’s Job

Several other business leaders are issuing similar directives — less publicized, but equally transformative:

  • Jon Moeller, CEO of Procter & Gamble, has articulated a pragmatic but ambitious vision for AI across the company’s business units, describing it as “a force multiplier for growth and productivity.” In an interview with Goldman Sachs, Moeller explained that AI is already being used to improve real-time quality control on manufacturing lines, generate product formulations faster and personalize marketing. He emphasized that it’s not about replacing people but amplifying their impact, saying, “AI enables each of us to be more productive and more effective — to be better at our jobs.” For Moeller, AI isn’t a future bet — it’s a current driver of business performance.
  • Jane Fraser, CEO of Citigroup, has made AI a central pillar of the bank’s $12 billion modernization strategy, not only for internal efficiencies but as a customer experience accelerator. In a July 2023 Fortune interview, Fraser noted that generative AI tools are already being deployed across development teams and data functions, including tools for code generation and data cleanup. “We must be proactive about embracing AI,” she said. “It’s an essential part of winning in the digital era.” Fraser’s framing of AI is decidedly business-first — not a technological leap, but a means to deliver better, faster and safer banking services at scale.
  • Chip Bergh, CEO of Levi Strauss & Co., has overseen the integration of AI to sharpen demand forecasting, optimize inventory and improve supply chain agility. By adopting predictive models that draw from real-time sales and external signals, Levi’s has been able to better match supply with demand, reduce markdowns and improve product availability. In remarks to the press, Bergh underscored that speed and adaptability are essential, especially in apparel: “You can’t outsource speed. The world moves too fast, and consumers expect more now. AI helps us keep pace.” For Bergh, AI isn’t about transformation for transformation’s sake — it’s how the company stays competitive in a volatile retail landscape.

What these leaders understand is that AI is about much more than tools and apps. Nor is it a sidecar to business strategy. It is business strategy.

What Real CEO Leadership in the Age of AI Looks Like

Executive leadership isn’t about cheerleading AI or greenlighting another pilot project. CEOs must fundamentally shift how they lead. Here’s what that looks like in practice:

  1. Mandate Use, Don’t Just Encourage Exploration. Like Lütke, CEOs must make clear that using AI isn’t optional. AI literacy and experimentation should be expected of everyone — not just the innovation team. Make it a part of onboarding, performance reviews, promotions and project evaluations.
  2. Tie AI to Productive Output. Shopify isn’t asking teams to build AI for AI’s sake. It wants people using AI in the prototype phase of projects — the earliest stages of idea development — when speed and iteration matter most. CEOs should insist that AI be applied where it accelerates core business goals: faster onboarding, better forecasting and more responsive customer experiences.
  3. Formalize Accountability. Follow Shopify’s lead in including AI proficiency in feedback loops — whether through peer reviews, OKRs or team dashboards. This reinforces that AI isn’t a tech skill, it’s a work ethic.
  4. Design for Scale, Not Just Sparkle. Stop launching pilots with no path to production. Instead, build AI usage standards, define enterprise-wide tooling strategies and create “AI-as-default” policies in business workflows. This is how you shift from novelty to normalcy.
  5. Lead Culturally, Not Just Operationally. One of the most overlooked CEO responsibilities in this era is cultural modeling. Use AI in your own daily work. Talk about it publicly. Ask teams how they’re applying it. CEOs are the ultimate cultural signal — if they treat AI like a gimmick, so will the rest of the organization.

The Emergence of the Self-Driving Enterprise

We’re fast approaching an era when leading companies will function more like self-driving enterprises — data-fueled, agentic AI orchestrated, highly automated and continuously learning and strategically adapting in real time. That won’t happen by happenstance. It will require CEOs to shift their organizations’ very metabolism.

What Shopify has shown is that the path to this future isn’t paved with expensive platforms or massive headcount changes — it’s built by creating a workplace culture where AI is part of every project, every role and every decision. Not because it’s trendy, but because it’s an imperative to be sufficiently efficient and adaptable.

Organizations that treat AI as a way of life will thrive. Those that relegate it to the IT department will lag — or lose altogether.

The memo from Lütke is more than an internal directive. It’s a mirror for every senior executive to look into and ask: Are we organizationally adapting? Or are we merely treating AI as a science project?