Former CEO Eric Schmidt blames ‘Work from home’ for Google’s lagging AI performance: Report

California-based tech giant Google is facing criticism from former CEO Eric Schmidt over its recent struggles in the artificial intelligence sector. During a talk at Stanford University, Schmidt attributed Google's lagging performance to its emphasis on remote work and work-life balance, reported the Times of India. 

Schmidt, who helmed Google from 2001 to 2011, expressed concern that Google's focus on flexible work arrangements has allowed rival startups like OpenAI and Anthropic to outpace it in AI development, as per the report.

According to Schmidt, these startups, driven by relentless work ethics, have gained a substantial advantage over Google. “Google chose to prioritize a relaxed work environment, which has hindered its innovation capabilities,” Schmidt stated. “In contrast, emerging companies are thriving because their teams are working with intense dedication.”

Reportedly, the former executive, who has long championed the value of in-office work, argued that the shift towards remote and flexible schedules has hampered Google's ability to stay competitive. Schmidt’s critique underscores his belief in the necessity of rigorous work culture to maintain a leading position in the fast-evolving tech industry. “If you want to compete effectively, you need to enforce a work environment that fosters constant collaboration and innovation,” he advised.

Despite Schmidt’s comments, Google's current policies reflect a compromise between remote work and in-office presence. Employees are required to be in the office at least three days a week, with attendance now being part of performance assessments.

Schmidt’s remarks come as Google grapples with heightened competition in the AI field. Although the company made significant early strides in AI, including key breakthroughs in 2017, it has struggled to keep pace with newer entrants like OpenAI, which notably prompted a high-stakes response from Google upon launching ChatGPT. In light of these challenges, Google has reinvigorated its AI efforts with the return of founder Sergey Brin to bolster its competitive stance.