Google’s ex-CEO blames ‘work from home’ for Google “falling” behind in AI race, here’s what he said

Former Google CEO Eric Schmidt has blamed the search giant’s lagging performance in the artificial intelligence race to its prioritisation of remote work and work-life balance over competitive drive. Speaking at Stanford University, Schmidt criticised Google’s approach, suggesting it has allowed startups like OpenAI and Anthropic to gain a significant edge in AI development.
“Google decided that work-life balance and going home early and working from home was more important than winning,” Schmidt told students. “And the reason the startups work is because the people work like hell.”

Schmidt, who led Google from 2001 to 2011, emphasised the intensity required to compete in the fast-paced tech industry. He argued that allowing employees to work from home and maintain flexible schedules has hindered Google’s ability to innovate at the same rate as its more agile competitors.
“I’m sorry to be so blunt, but the fact of the matter is, if you all leave the university and go found a company, you’re not going to let people work from home and only come in one day a week if you want to compete against the other startups,” Schmidt added.
Schmidt has previously voiced strong support for in-office work, arguing that it’s crucial for building effective management and fostering innovation. In an April 2022 interview with CNBC, he emphasized the importance of face-to-face interactions, stating, “I don’t know how you build great management” in a virtual environment.
However, Google’s current work policies differ from Schmidt’s characterization. The company reportedly requires most employees to work from the office at least three days a week and has begun tracking office attendance as part of performance reviews.
The former executive’s comments come as Google faces mounting pressure in the AI field. Despite the company’s early breakthroughs, including significant advancements in 2017, Google has struggled to maintain its lead against emerging AI companies, as the likes of OpenAI which sent a “red alert” at Google HQ when it launched ChatGPT, with founder Sergey Bin coming back to help Google in its AI efforts.