The rapid development of Artificial Intelligence (AI) technology creates opportunities while simultaneously intensifying concerns regarding its safety risks and alignment problems. Existing research often discusses AI functionality (the technical capability for automated decision-making) and AI safety (the responsible attribute for risk prevention) in isolation, overlooking their inherent paradoxical relationship. This study aims to explore how to coordinate the tension between functionality and safety through strategic design to achieve sustainable competitive advantage. We propose an AI "Functionality-Safety" paradox framework and identify four core scenarios of interaction between functionality and safety. Meanwhile, by integrating perspectives from paradox theory and dynamic capability theory, we formulate the core viewpoints on the AI "Functionality-Safety" paradox. On this basis, the study puts forward dynamically matched strategic paths for different scenarios, explains the non-linear relationships and balance mechanisms among AI application timing, internal and external capabilities, and corporate performance under different strategies. The main contributions of this study lie in constructing an AI technology analysis framework that integrates the functionality and safety dimensions, forming dynamic synergy perspectives on the AI "Functionality-Safety" paradox, and establishing the dynamic matching between AI scenarios and collaborative strategies. This study provides theoretical guidance and practical implications for firms' paradox collaborative management and AI strategies.