Eric Schmidt, the former CEO of Google, recently made headlines with his controversial remarks at Stanford University. He suggested that Google’s work-from-home (WFH) policies and emphasis on work-life balance are to blame for the company’s also-ran status in the AI race. According to Schmidt, startups thrive because their employees “work like hell,” implying that Google’s more flexible approach has made it less competitive. While his comments, since retracted, sparked debate, they overlook the deeper issues that have actually hindered Google’s AI development. Let’s dive into why Eric Schmidt is wrong and what truly held Google back.
More Hours Don’t Equal More Innovation
Before getting into the real reasons Google stumbled, it’s worth noting that spending too much time at work doesn’t always lead to better outcomes. Just ask Eric Schmidt, who’s been involved in more than one intra-office romance. People spending excessive time at the office can wander into unproductive distractions. But more importantly, innovation doesn’t come from clocking more hours—it comes from having the right vision and the courage to pursue it.
The Vision Google Missed
Long before ChatGPT took the world by storm, Google had already introduced the concept of interacting with a language model. At Google I/O in 2021, they unveiled LaMDA. This conversation-based AI could chat about anything, from the surface of Pluto to the history of Japan. Though an impressive technological feat, as a user, I found myself scratching my head at its practical application. Why would anyone want to chat with Pluto? Or with a computer masquerading as a paper airplane? The potential of this technology was immense. Google, however, seemed more interested in showcasing the novelty of LaMDA rather than understanding how it could revolutionize human-computer interaction.
This is where Google faltered—while they were ahead technically, they lacked the vision to see what LaMDA could become. On the other hand, OpenAI designed ChatGPT with a clear purpose: to serve as a versatile assistant, helping users with everything from answering questions to generating creative content. OpenAI understood the broader appeal of conversational AI, and turned it into a tool that people could actually use in their daily lives. Google, by contrast, got lost in the weeds, focusing on technological prowess without a compelling application.
Fear, and the Innovator’s Dilemma
The second major factor that held Google back was fear—a textbook case of the Innovator’s Dilemma. Google’s search engine has been a cash cow for many years, but that kind of success breeds caution. The company worried so much about making a misstep that it failed to innovate boldly.
Google’s leadership feared that an aggressive move into AI could disrupt its existing business or, worse, damage its reputation. They were terrified of what could happen if their AI made a mistake, said something controversial, or caused a public relations nightmare. This caution led to a paralysis that allowed others to leap ahead. Companies like OpenAI took the risks, and embraced the potential for failure as part of the innovation process.
The Real Lesson: It’s Not About Where You Work
Eric Schmidt is wrong when he claims that Google’s WFH policy is to blame for falling behind in the AI race. He also seems not to understand the real issues. Google didn’t stumble because its employees weren’t working hard enough or spending enough time in the office. It fell behind because it lacked the vision to see what its AI could become. The company was also too afraid to take the bold steps necessary to bring that vision to life.
The real lesson isn’t about where employees work, but about how a company fosters innovation. Vision, courage, and a willingness to take risks are what drive progress—not endless hours in the office. Google’s future in AI will depend on its ability to overcome these deeper challenges, not on where its employees work.
Jayson Adams is a technology entrepreneur, artist, and the award-winning and best-selling author of two science fiction thrillers, Ares and Infernum. You can see more at www.jaysonadams.com.