Artificial intelligence is often painted as a double-edged sword. On one side, automation threatens traditional roles. On the other, entirely new categories of work are emerging. Which side of the equation a company falls on may depend on three key factors, according to Alex Schultz, Chief Marketing Officer at Meta.

Speaking on The A16z Podcast, Schultz, who has been with Meta since its early Facebook days, shared insights into how AI is reshaping workforces.

Efficiency cuts leading to “The Great Shrinking”

The first and perhaps most visible change is how AI makes existing processes more efficient. “Existing stuff is going to be done more efficiently with AI as it exists today,” Schultz explained. This means fewer people will be needed for repetitive or easily automated tasks.

It is already happening. Amazon CEO Andy Jassy said earlier this year that AI-driven efficiency could reduce parts of its corporate workforce. This trend, dubbed by some as “The Great Shrinking,” highlights how optimization often results in headcount reductions.

Unlocking the impossible

Yet, AI is also enabling work that was once unimaginable. Schultz pointed to semantic understanding of content, which now allows platforms to rank and recommend short-form videos more effectively. Such breakthroughs were unattainable without advanced AI models.

This opens doors to new roles such as AI trainers, prompt engineers, and specialists guiding organizations through adoption. These jobs did not exist just a few years ago, underscoring the transformative potential of AI-driven innovation.

Making the expensive affordable

The third factor Schultz emphasized is affordability. Some projects were technically possible in the past but financially unrealistic. AI, however, brings them within reach.

For example, customer support bots were once prohibitively expensive to design and deploy. Now, with AI-powered systems, businesses can offer scalable, cost-effective solutions, creating opportunities for developers, designers, and system integrators.

The uncertain balance ahead

According to Schultz, the net impact of AI on jobs depends on how these three forces collide. Will efficiency-driven cuts outweigh gains from new possibilities and affordable innovations? Or will the surge of new work tip the scales toward growth?

“It’s still up in the air,” Schultz admitted on the podcast. Some companies may shrink, while others may grow larger than ever by embracing AI in innovative ways.

The final twist, he added, lies in the possibility of artificial general intelligence (AGI). Should AGI arrive sooner than expected, it could disrupt the equation entirely, reshaping not just company headcounts but the very nature of work itself.