‘Work-from-home culture’ hampered Google’s ability to innovate: Former CEO
Google struggles to maintain its lead over emerging AI companies. | Photo: Reuters
Former Google CEO Eric Schmidt has made a sensational claim about the search giant, saying the company failed to anticipate the early rise of ChatGPT and generative AI because its employees “prioritized working from home.” He also blamed Google’s underperformance in the AI race on its prioritization of work-life balance over competitiveness.
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 really hard.”
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 enforcing flexible schedules hampered Google’s ability to innovate at the same pace as its more nimble competitors. “I’m sorry to be so blunt, but the fact of the matter is, if you’re all going to drop out of college and start a company, you’re not going to have people work from home and only come in one day a week if you’re going to compete with all the other startups,” Schmidt said.
Eric Schmidt advocates office work
Earlier, Eric Schmidt had expressed his strong support for office working, stating that it is essential for effective management and stimulating innovation.
In an April 2022 interview with CNBChe said, “I don’t know how to build great management” in a virtual environment. Eric Schmidt was chairman and CEO of Google until 2015, when he left the company.
Currently, most Google employees work at least three days a week in the office. According to media reports, the company has started tracking office attendance as part of performance reviews.
Is Google lagging behind in the AI race?
Eric’s comments come as Google faces mounting pressure in the AI space. Despite the company’s early breakthroughs, including significant advances in 2017, Google has struggled to maintain its lead over emerging AI companies.
It’s worth noting that after the launch of OpenAI under the leadership of Sam Altman, Google founder Sergey Brin returned to help the tech giant with its AI efforts.
First publication: Aug 15, 2024 | 5:49 PM IST