Ex-Google CEO Says Working from Home Hurts AI Progress

In a recent discussion with Stanford University students, former Google CEO Eric Schmidt attributed the tech giant's lag in the artificial intelligence (AI) race to its work-from-home policy. Schmidt expressed that Google prioritized work-life balance over competitive performance, stating, “Google decided that work-life balance and going home early and working from home was more important than winning.” He emphasized that startups like OpenAI and Anthropic thrive because their employees are highly dedicated and work intensely. Schmidt, who led Google from 2001 to 2011 and later served as executive chairman, argued that if university graduates were to establish their own companies, they would not allow flexible work arrangements if they aimed to compete effectively. He pointed out that some studies indicate a decline in productivity among remote workers, a sentiment echoed by many employers who perceive reduced output in a remote setting. Google has adopted a hybrid work model, requiring employees to be in the office approximately three days a week. This policy was reinforced by a 2022 report and an email sent to employees last summer, which indicated that attendance would be monitored through badge swipes. However, return-to-office mandates can lead to employee turnover, with nearly half of workers indicating they would resign if forced into a full-time in-person role. Interestingly, Google is not alone in its hybrid approach; OpenAI also follows a similar three-day in-office policy. Despite this, Google’s initial AI chatbot, Bard, struggled to compete with OpenAI’s ChatGPT, which has gained immense popularity since its launch.