Latest news with #TobiasLütke
CNBC
3 days ago
- Business
- CNBC
Tech companies are requiring employees to learn and use AI at work—here's the best way to do that, experts say
Using artificial intelligence on the job is becoming increasingly common across the U.S. Some bosses — particularly at tech companies — even require it, for either some or all of their employees. E-commerce giant Shopify, for example, is in the "all" camp, co-founder and CEO Tobias Lütke wrote in a company-wide memo, which he posted to social media network X on April 7. "Using AI effectively is now a fundamental expectation of everyone at Shopify. It's a tool of all trades today, and will only grow in importance," Lütke wrote. "Frankly, I don't think it's feasible to opt out of learning the skill of applying AI in your craft; you are welcome to try, but I want to be honest, I cannot see this working out today, and definitely not tomorrow." Fiverr CEO Micha Kaufmann similarly told employees and freelancers to "study, research and master the latest AI solutions in your field," in an internal email he posted to X on April 8. "AI is coming for your jobs," he wrote. "Heck, it's coming for my job, too. This is a wake-up call."Duolingo co-founder and CEO Luis von Ahn joined in, too. "Duolingo is going to be AI-first," von Ahn wrote in an email posted to Duolingo's LinkedIn page on April 28. "We'll gradually stop using contractors to do work that AI can handle. ... Headcount will only be given if a team cannot automate more of their work." Plans to foster an AI-empowered workforce could be timely: Tech luminaries like Bill Gates and Mark Cuban say that AI will greatly change the way many people live and work, potentially as soon as within the next 10 years. But encouraging AI at work — in a way that's actually helpful — may not be quite as easy as simply requiring that people start using it. Here's what good bosses can do to get their employees interested in using AI, according to leadership experts. The most important lesson for any leader, says Rohan Verma: If you mandate or heavily encourage AI, you need to teach employees how to use it in ways that'll specifically benefit your business. Verma, who runs San Francisco-based executive coaching firm Arbor Advisory, says he worked with Microsoft-owned GitHub to help implement the parent company's Copilot AI tool across the organization. "[Microsoft] rolled out a pretty formal coaching program, specific resources and proper onboarding. They didn't just say 'Use the tool.' They gave a set of options on how to thrive with it," he says. If you want to get more people around you to use AI, start by gauging how much they already know about the technology, recommends Kalifa Oliver, an author, executive advisor and global director for employee experience at Ford. Then, if you have the budget, "invest in the infrastructure" to help train your colleagues on AI tools that are new to them, or advanced ways of using familiar systems, says Oliver. This could include access to online courses and learning platforms, mentorship programs or assessments to gauge what employees already know about using AI and what they need to be more efficient, she adds. Don't use AI primarily as a cost-cutting method, automating tasks best done by humans or even replacing human headcount, warns Oliver. Even the most advanced AI models make factual errors, and if the wrong human is out of the office, those mistakes could go unnoticed and create problems, she notes. "I think CEOs will start taking an all-in stance because it sounds good, unfortunately. Do I think that it's a stance that CEOs should take? That's a different story," Oliver says. ,
Forbes
13-04-2025
- Business
- Forbes
Business Tech News: Shopify CEO Says AI First Before Employees
Toronto , Canada - 22 May 2019; Tobias Lütke, CEO, Shopify, (Photo By David Fitzgerald/Sportsfile ... More via Getty Images) Here are five things in business tech news that happened this week and how they affect your business. Did you miss them? Shopify CEO Tobi Lütke has implemented a new hiring policy that prioritizes artificial intelligence (AI) over human hires. In a memo to employees, Lütke stated that teams must demonstrate why their needs cannot be fulfilled using AI before requesting additional resources. This approach reflects Shopify's commitment to integrating AI into its operations, including employee performance reviews. The company has already embraced generative AI tools – such as Shopify Magic and Sidekick – to enhance productivity. However, this shift has also led to significant layoffs in recent years. (Source: The Verge) Why this is important for your business: This strategy seems a little extreme. And it's curious to me that it became public. Is this more of a PR stunt than an actual strategy to impress shareholders and show the world how ahead of the game Shopify is? Making an announcement like this also isn't exactly the best way to attract and retain talent to an organization. As I've written repeatedly, AI will be replacing employees. Big companies are doing this. Other organizations will soon be joining in as the technology becomes more affordable and accurate. But announcing that you're effectively doing this is not only a little premature but also isn't a good look. Lance Whitney of ZDNet wrote about the 'variety of compelling advantages' ChatGPT has to offer. He lists five reasons for why he uses it daily despite the available alternatives. Web Searching: ChatGPT's AI-powered search provides direct answers without distractions. Deep Research: With a paid subscription, ChatGPT can conduct detailed research, saving time by compiling comprehensive reports from online sources. Personalized Chats: The chatbot tailors interactions based on user preferences, enhancing the conversational experience. Prompt Writing Assistance: ChatGPT helps users craft effective prompts for various tasks. Replacing Siri: The AI platform's versatility and capabilities make it a strong contender for replacing traditional virtual assistants like Siri. (Source: ZDNet) Why this is important for your business: He loves ChatGPT and so do I. But I also use other AI platforms – Google Gemini, Microsoft CoPilot and Perplexity - for certain tasks. Every business person should have a subscription to at least one. They're like having an expert assistant at your disposal to help advise and perform certain tasks for you. ChatGPT and its counterparts will soon be as critical a mobile app as your email, text and phone apps. Management software platform Procore has published its "Future State of Construction" report – highlighting how AI, automation, and workforce changes are transforming the construction industry. Key findings touch on AI automation, workforce shifts, mental health, data utilization and emerging activities. (Source: Stock Titan) Why this is important for your business: The report has extremely valuable insights for companies in the construction field. For example, AI and automation technologies are reducing inefficiencies, with 55 percent of leaders expecting automation to disrupt the industry within five years, and that, with 53 percent of workers retiring by 2036, companies are focusing on upskilling programs to attract and retain talent. My best clients are always looking at information available now and using that to drive their future growth. There's plenty of data here that will help owners and managers of construction firms make decisions this year that will impact their companies in the years to come. Bank of America says it has integrated AI across its operations, with over 90 percent of its 213,000 employees using AI tools to enhance productivity and client service. (Source: Bank Automation News) Why this is important for your business: Like many big financial services firms, the bank has leaned into generative AI tools to assist employees, and make its call center more efficient. The bank is also using AI to power over one million interactive simulations annually, aiding employees in client interactions. I recently wrote about how JP Morgan is implementing AI tools across their organization to accomplish many of the same goals. At Shoptalk's Spring 2025 conference in Las Vegas, retail leaders discussed the transformative role of AI in the industry. Highlights include Customer Experience: AI is enhancing customer service and loss prevention, while shoppers are using AI to assist with purchases. Creative Tools: Meta showcased generative AI tools for ad creation, emphasizing the shift from automation to creative AI. Storytelling: Toys R Us used OpenAI's Sora platform to create a branded video, demonstrating how AI can innovate storytelling methods. Human-AI Collaboration: A recurring theme was that humans with AI will outperform those without it, highlighting the importance of integrating AI into workflows. (Source: Retail Dive) Why this is important for your business: More AI use cases, this time in the retail industry. The above business tech news items all have one thing in common this week: they're showing how AI is being used in different industries, from construction and finance to retail and general every day assistance. In 2025 AI is clearly beginning to mature and larger companies that have invested tens of millions of dollars are starting to receive that return on investment. What's important is that many of these technologies – as they're being teste and rolled out by big corporations – will ultimately trickle down to small and mid sized businesses. Each week I round up the five business tech news stories that impact my company and my clients the most and then provide a little insight.
Forbes
09-04-2025
- Business
- Forbes
Selling AI Strategy To Employees: Shopify CEO's Manifesto
Tobias Lütke, CEO, Shopify (Photo By David Fitzgerald/Sportsfile via Getty Images) 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: 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. 'CEOs must adapt to leading organizations of, say, 1,000 employees empowered with 5,000 AI assistants.' 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. Several other business leaders are issuing similar directives—less publicized, but equally transformative: 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. 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: 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?
Yahoo
09-03-2025
- Business
- Yahoo
2 of the Smartest Stocks to Buy With $500 and Hold Forever
There are plenty of things to buy with $500. Few can reliably turn that sum into $600, $800, or even $1,000 in several years. That's what makes the stock market so great: It remains one of the best ways for most average people to grow their capital over time. However, to pull it off, investing in the right companies with strong businesses, excellent long-term prospects, and solid competitive advantages is crucial. Here are two stocks that fit the bill: Shopify (NYSE: SHOP) and Microsoft (NASDAQ: MSFT). For those with $500 to spare, read on to find out why putting that money in either of these two market leaders would be a smart move. Shopify aims to be a 100-year company, a feat few have accomplished. The e-commerce specialist is off to a good start. Corporations that last that long typically have several qualities, including a visionary leader, significant growth potential, and a competitive advantage. Shopify, at least for now, has all three. The company's co-founder, Tobias Lütke, is the current CEO, and he has led it to market-crushing returns since its 2015 initial public offering (IPO). What's more, recent decisions say a lot about Shopify's management team. For a long time, the company tried to build its logistics business, a project that might have paid off in the long run but was a drag on its bottom line and margins. Management abandoned this initiative in 2023 despite repeatedly saying it wouldn't in previous years. Since then, Shopify's profits and margins have increased. Some executive teams might have doubled down and refused to change their minds. However, Shopify understood that getting out of the logistics business was more important than saving face. The company's management will eventually change, but so far, it is looking great for Shopify. Furthermore, the opportunities within its core e-commerce business are massive. Shopify offers merchants the opportunity to create online storefronts. It provides services, from cross-selling on major social media platforms to marketing, that allow business owners to focus on other aspects of their business. Shopify has been incredibly successful -- it holds a 12% share of the e-commerce market in the U.S. by gross merchandise volume. Yet, e-commerce accounted for just 16.4% of total retail sales in the U.S. in the fourth quarter, a number that is likely much lower in most countries worldwide. So, there is still plenty of whitespace here. Lastly, Shopify benefits from a moat from at least two sources. Its app store allows merchants thousands of options to customize their online store, while the company's main e-commerce website benefits from switching costs. In short, Shopify is an excellent stock to buy and hold for the long term, and at $102 apiece, investors with $500 can get four shares of the company. Microsoft has been around for decades and has already produced life-changing returns to its longtime shareholders. Some might argue that the company's best days are behind it. Microsoft's market cap is nearly $3 trillion. How much growth can the company possibly have left in the tank? Perhaps Microsoft won't perform as well as it did in the past, but the stock is still worth holding onto for good. Microsoft also had excellent leaders -- its current one, Satya Nadella, took over in 2014 and has led the company through another superb period. Though Microsoft's legacy computer operating system business is no longer much of a growth driver, the company can now count on its cloud computing unit, where it holds the second-leading market share, to drive solid top- and bottom-line results. Microsoft's cloud business, Azure, was already performing well, but things have gotten even better recently thanks to artificial intelligence (AI). As of its latest period, the second quarter of its fiscal year 2025 (ended Dec. 31, 2024), Microsoft's AI business boasted a $13 billion annual run rate, an increase of 175% year over year. Microsoft also has a competitive edge. Its brand name is one of the strongest in the world. Microsoft's cloud business and its suite of productivity tools also benefit from switching costs. Furthermore, the company has an internal culture of innovation, as evidenced by its long history of technological breakthroughs. Expect the company to conjure up other ways to improve its financial results in the long run. Lastly, Microsoft is an excellent dividend stock. The company has increased its payouts by almost 168% in the past decade. Reinvesting the dividend is a great way to boost long-term returns. Investors might only be able to get one share of Microsoft with $500, considering its current stock price of about $388, but that would be money well spent. Before you buy stock in Shopify, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Shopify wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $690,624!* Now, it's worth noting Stock Advisor's total average return is 821% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of March 3, 2025 Prosper Junior Bakiny has positions in Shopify. The Motley Fool has positions in and recommends Microsoft and Shopify. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 2 of the Smartest Stocks to Buy With $500 and Hold Forever was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
27-01-2025
- Business
- Yahoo
Institutional investors have a lot riding on Shopify Inc. (NYSE:SHOP) with 66% ownership
Given the large stake in the stock by institutions, Shopify's stock price might be vulnerable to their trading decisions 49% of the business is held by the top 25 shareholders Recent sales by insiders To get a sense of who is truly in control of Shopify Inc. (NYSE:SHOP), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are institutions with 66% ownership. Put another way, the group faces the maximum upside potential (or downside risk). And last week, institutional investors ended up benefitting the most after the company hit US$139b in market cap. One-year return to shareholders is currently 29% and last week's gain was the icing on the cake. Let's delve deeper into each type of owner of Shopify, beginning with the chart below. View our latest analysis for Shopify Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. We can see that Shopify does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Shopify's historic earnings and revenue below, but keep in mind there's always more to the story. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don't have a meaningful investment in Shopify. Looking at our data, we can see that the largest shareholder is Capital Research and Management Company with 9.6% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.2% and 4.9%, of the shares outstanding, respectively. Tobias Lütke, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer. Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our most recent data indicates that insiders own some shares in Shopify Inc.. Insiders own US$8.7b worth of shares (at current prices). Most would say this shows a good alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling. The general public-- including retail investors -- own 28% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. It's always worth thinking about the different groups who own shares in a company. But to understand Shopify better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Shopify you should be aware of. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
