Eric Schmidt, former CEO of Google, has issued a stark warning about the potential consequences of widespread remote work for the tech giant, claiming it’s hindering innovation and allowing competitors like OpenAI and Anthropic to gain ground.

In a recent interview, Schmidt argued that the flexibility of remote work, while appealing to employees, is hindering the collaborative spark that drives innovation at Google. He pointed to the rise of competitors like OpenAI and Anthropic, who have embraced in-person collaboration, as evidence of the potential downsides of remote work.

“The magic of Google, the reason we were able to innovate so quickly, was because of the serendipitous encounters, the brainstorming sessions, the impromptu collaborations that happened in the hallways and the cafes,” Schmidt said. “You don’t get that with remote work.”

This isn’t the first time Schmidt has voiced his concerns about the impact of remote work. He’s previously stated that remote work can lead to “a decline in innovation, a decline in creativity, a decline in the ability to build a strong culture.”

Schmidt’s comments come at a time when Google is facing increased competition from OpenAI, the company behind ChatGPT, and Anthropic, a rival AI startup founded by former OpenAI employees. Both OpenAI and Anthropic have made significant strides in the development of large language models and generative AI, raising concerns within Google about its own position in the rapidly evolving field.

While Google has its own AI research division, DeepMind, and has been developing its own language models, critics argue that the company has been slow to respond to the emergence of OpenAI and Anthropic. Some believe that Google’s reliance on remote work, particularly in its AI research division, may be contributing to this perceived lag.

Schmidt’s warning serves as a reminder of the complex relationship between remote work and innovation. While remote work can offer flexibility and work-life balance, it also presents challenges for companies like Google, where collaboration and creative brainstorming are crucial for staying ahead in a highly competitive field.

It remains to be seen whether Google will adjust its stance on remote work in response to Schmidt’s concerns. However, his warning highlights the importance of striking a balance between employee well-being and the need for fostering a culture of innovation and collaboration.