TMTPOST--Former Google CEO Eric Schmidt has issued an apology after making controversial comments about the company's remote work policy, which he blamed for Google’s struggles in the AI sector.

His remarks, which were part of a lecture at Stanford University, quickly drew attention online, leading to backlash from the public.

“I misspoke about Google and their work hours,” Schmidt told the Wall Street Journal. “I regret my error.”

In the removed video, which had received over 40,000 views, Schmidt suggested that Google had fallen behind AI startups like OpenAI and Anthropic due to its remote work practices. He implied that Google’s focus on work-life balance and allowing employees to work from home was hindering its competitiveness in the rapidly evolving AI field.

“Google decided that work-life balance and going home early and working from home was more important than winning,” Schmidt said during his lecture. “And the reason startups work is because the people work like hell.”

“But the fact of the matter is, if you all leave the university and go found a company, you’re not gonna let people work from home and only come in one day a week if you want to compete against the other startups.”

Schmidt, who served as Google's CEO from 2001 to 2011 and remained with the company in various roles until 2020, faced immediate backlash for his comments, particularly because both OpenAI and Anthropic have similar or even more flexible remote work policies compared to Google. For instance, OpenAI employees typically follow a three-day in-office schedule, while Anthropic allows employees to work from home for 75% of the week.

In response to Schmidt's comments, the Alphabet Workers Union, representing over 1,000 employees across the U.S. and Canada, pushed back strongly. “Flexible work arrangements don’t slow down our work,” the union posted on X, formerly Twitter. “Understaffing, shifting priorities, constant layoffs, stagnant wages, and lack of follow-through from management on projects—these factors slow Google workers down every day.”

Schmidt’s comments come after Google recently faced challenges in developing its AI technology. Its AI tool Google Gemini, which was released in December 2023, has been clowned for failing to accurately create images of people.

Schmidt’s comments also touched on the broader debate around remote work and its impact on productivity. While many CEOs, including Elon Musk and J.P. Morgan’s Jamie Dimon, have argued that in-person work is crucial for creativity and productivity, research tells a different story.

A recent study by Stanford professor Nick Bloom found that hybrid work models can actually enhance productivity by 1% while reducing employee turnover by 33%. The study also highlighted the significant cost savings that businesses can achieve through flexible work arrangements.

CEOs like Musk have taken hardline stances, mandating full-time office work at companies like Tesla and SpaceX, while others, like Meta’s Mark Zuckerberg, have reversed earlier support for remote work, now requiring employees to return to the office.

Additionally, Schmidt shared some investment advice regarding Nvidia, noting that he has observed a clear trend in the stock market where large tech companies are planning to make increasingly significant investments in Nvidia.

Schmidt believes that although Nvidia won't be the only winner in the AI field, there aren't many other options available. In his view, the companies that can invest more in Nvidia's chips and data centers will have a technological edge over their smaller competitors.

Schmidt emphasized that dominant tech companies often struggle to adapt to new industry waves, and that innovative thinking and a strong office presence are crucial in Silicon Valley.