CEOs are making stark choices about AI and their workforce. Coinbase CEO Brian Armstrong announced cutting 14% of staff, saying AI changes how the cryptocurrency exchange operates. PayPal plans to reduce its workforce by 20% over the next two to three years as it accelerates AI adoption. These leaders see technology as a way to do more with fewer people.

A different philosophy emerges at Axon Enterprise, maker of the Taser. President Josh Isner recently told his 5,000-plus employees that AI will help teams do more, not replace them. Even if productivity doubles or triples, he argues there will be additional problems to solve. His message: block out the noise and keep performing. This contrasts sharply with companies viewing AI primarily as a cost-cutting tool.

The divide is showing up on earnings calls. Meta's CFO Susan Li recently questioned how many employees the company will ultimately need as AI capabilities expand. Bed Bath & Beyond's CEO told investors to expect significant reduction in head count with AI. Some companies, though, aim to keep head counts flat—not hiring much, but not firing either—by achieving more with existing teams through AI.

This split reflects broader anxiety about AI's impact on white-collar work. Executives face a fundamental choice: use AI to shrink their workforce or stretch it further. The answer may determine which companies thrive and which workers face displacement.