Your New Baseline Expectation

“Reflexive AI usage is now a baseline expectation at Shopify.”​

This statement from a leaked internal memo by Tobias Lütke, CEO of Shopify, underscores the company’s shift toward fully integrating AI into the company’s culture and operations—otherwise known as going “AI-native.”

Lütke goes on to highlight AI’s transformative potential. He describes the technology as a “massive productivity multiplier” and regards it as the most significant development in his career. Throughout the memo, he strongly encourages employees to view AI as a partner in their work.

AI Adoption in Professional Services

Shopify’s memo is making headlines because they are one of the largest e-commerce platforms in the world. But the company is far from alone in the way it’s approaching AI. AI adoption is accelerating rapidly in businesses of all stripes and sizes. A recent article published by Venrock outlines how the advent of AI has brought the $20 trillion professional services industry to a critical turning point. Legacy services are fading into extinction, and AI-native companies are poised to dominate. The AI takeover is undeniable. It’s rapidly reshaping industries across the board, and legal services are no exception.

The Legal Sector Goes AI-Native

Lütke’s call to embrace AI as a necessity for innovation and efficiency mirrors the push for AI adoption within the legal sector. Forward-thinking law firms are leveraging AI to enhance their services, improve client outcomes, and remain competitive. 

The legal services industry has been long dominated by human knowledge workers and labour-intensive processes. But the cracks in the old model are starting to show, and the numbers back it up. According to Venrock, traditional legal firms typically operate with a 35–45% gross margin, whereas AI-native firms have margins of 65–75%. This difference stems from a dramatically leaner cost structure, with professional salaries dropping from 45–55% of COGS to a mere 15–20%, and support staff costs shrinking from 10–15% to as little as 3–5%.  

What’s even more impressive is that AI-native firms can serve 5–10 times more clients by harnessing scalable, reusable knowledge assets and advanced automation. Routine tasks like document review are completed in seconds, while more complex processes such as legal research, analysis, and drafting are greatly accelerated by AI. AI is becoming central to how law firms function. This is true across the board from small, innovative boutiques to industry giants like DLA Piper and Paul Weiss. AI-native law firms offer faster, more accurate, and cost-effective services. AI adoption is no longer optional; rather, it is a core requirement for long-term growth and success.

Running Faster Just to Stay in Place

Lütke’s memo refers to the “Red Queen race,” a term borrowed from Alice in Wonderland. The Red Queen tells Alice: “Now, here, you see, it takes all the running you can do, to keep in the same place.”

The point is that Shopify must run faster and continually evolve just to maintain its place in an increasingly competitive landscape. Law firms are no different. Those that wish to stay afloat must evolve. Those that fail to do so will be outpaced by AI-driven companies that are more agile and produce vastly superior outcomes.

A Fork in the Road for Law Firms

Thus the legal profession has reached a pivotal fork in the road. On one side are the firms that are slow to adapt. These are increasingly viewed as excessively expensive and inefficient. On the other side are AI-native firms, delivering smarter, faster, and cheaper services.

The AI revolution isn’t theoretical. It’s already here.

And the future of law belongs to those who are prepared to embrace it.