'Work from home' culture hindered Google's ability to innovate: Ex-CEO

Eric Schmidt, who was Google CEO till 2015, blamed the company's lagging performance in the AI race on its prioritisation of work-life balance over competitive drive

Former Google CEO Eric Schmidt has made a sensational claim regarding the search giant saying the company did not anticipate the early rise of ChatGPT and generative AI because its employees “prioritised working from home”. He also blamed Google’s lagging performance in the AI race on its prioritisation of work-life balance over competitive drive.

Speaking at Stanford University, Schmidt said, "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.”

Speaking about the intensity required to compete in the fast-paced tech industry, Schmidt, who led Google from 2001 to 2011, argued that allowing employees to work from home and maintaining flexible schedules 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 start 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 said.

Eric Schmidt bats for in-office work

Earlier too, Eric Schmidt had voiced strong support for in-office work, maintaining that it’s crucial for building effective management and fostering innovation.

In an April 2022 interview with CNBC, he said, “I don't know how you build great management” in a virtual environment. Eric Schmidt was the chairman and CEO of Google till 2015, when he exited the company. 

Currently, most Google employees work from the office at least three days a week. The company has begun tracking office attendance as part of performance reviews, according to media reports.

Is Google behind in the AI race?

Eric's comments come at a time when Google is facing 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.

It is worth mentioning that after the launch of Sam Altman-led OpenAI, Google founder Sergey Brin returned to help the tech giant in its AI efforts.