Eric Schmidt, Former Google CEO Criticizes Remote Work for Hindering AI Progress

Former Google CEO Eric Schmidt has sparked a debate by attributing Google’s lag in the AI race to its remote work culture. In a recently surfaced YouTube video, Schmidt, who led Google as CEO from 2001 to 2011 and later served as executive chairperson until 2015, voiced his concerns during a lecture at Stanford University. He argued that remote working is a significant factor in Google’s current struggle to stay competitive in the rapidly advancing field of artificial intelligence.

When asked about why startups like OpenAI and Anthropic seem to have an edge over Google in AI, Schmidt didn’t hold back. He bluntly stated, "Google decided that work-life balance and going home early and working from home was more important than winning." He pointed out that these smaller, more agile companies are succeeding because "the people work like hell," suggesting that their relentless work ethic is giving them the upper hand.

Schmidt also criticized Google's current work culture, particularly the practice of working from the office only one day a week. Although no longer with the company, he emphasized to the students that such a practice is not sustainable for a competitive business environment. "I’m sorry to be so blunt," he said, "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."

Further, Schmidt highlighted that top tech companies often miss out on the next big industry shift because they lack innovative thinking and leadership. He praised leaders like Elon Musk and companies like Taiwan Semiconductor for their focus on hands-on experience and innovative approaches, which he believes are crucial for staying ahead. Schmidt's views are echoed by other industry leaders, such as JP Morgan CEO Jamie Dimon, who has also been critical of remote work, urging employees to return to the office.

But is Google really allowing employees to work from the office only one day a week? Reports suggest otherwise. In 2022, Google mandated that employees come into the office three days a week. Additionally, a CNBC report from June 2023 indicated that Google began tracking office attendance and using it as a factor in performance evaluations.