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“Home office” culture hindered Google’s ability to innovate: Ex-CEO | Tech News
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“Home office” culture hindered Google’s ability to innovate: Ex-CEO | Tech News

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Google is struggling to maintain its lead over emerging AI companies. | Photo: Reuters

Former Google CEO Eric Schmidt has made a sensational claim about the search giant: the company failed to foresee the early rise of ChatGPT and generative AI because its employees “prioritized working from home.” He also blamed Google’s sluggish performance in the AI ​​race on the company prioritizing work-life balance over competitive ambition.

At Stanford University, Schmidt said: “Google decided that work-life balance, finishing early and working from home were more important than winning,” Schmidt told students. “And the reason the startups work is because people work like crazy.”

Schmidt, who led Google from 2001 to 2011, spoke about the intensity required to compete in the fast-paced technology industry, arguing that the ability to work from home and keep flexible hours hindered Google’s ability to innovate at the same pace as its more agile rivals. “I’m sorry to be so blunt, but the fact is, if you all leave university and start a company, you’re not going to have 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 advocates for office work

Eric Schmidt had previously spoken out strongly in favor of office work, stressing that it was crucial for building effective management and promoting innovation.

In an interview in April 2022 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 in the office at least three days a week, and media reports say the company has begun tracking office attendance as part of performance reviews.


Is Google lagging behind in the AI ​​race?

Eric’s comments come at a time when Google is facing increasing pressure in the AI ​​space. Despite the company’s early breakthroughs, including significant advances in 2017, Google has struggled to maintain its lead over upstart AI companies.

It is worth mentioning that after launching OpenAI under the leadership of Sam Altman, Google founder Sergey Brin returned to help the tech giant with its AI efforts.

First published: 15 August 2024 | 17:49 IS

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