Ex-Google CEO Eric Schmidt says AI isn’t overhyped — the biggest gains from automating corporate work are still ahead
In a recent interview at the John F. Kennedy Jr. Forum at Harvard University, former Google CEO Eric Schmidt made a compelling case for the underappreciated potential of artificial intelligence (AI), arguing that the technology is far from overhyped. Instead, he believes that we are only scratching the surface of AI’s capabilities, particularly in automating the mundane yet costly aspects of corporate operations. Schmidt pointed out that while many discussions around AI focus on its more glamorous applications, the real transformation lies in automating repetitive tasks such as billing, accounting, product design, and inventory management. He emphasized that these “boring” back-office functions consume billions in corporate spending and represent a vast opportunity for improvement through AI.
Schmidt’s insights reflect a broader perspective on the future of AI across various sectors, including medicine, climate solutions, and logistics. He noted that while some economists express concerns about a potential AI bubble, suggesting that the current enthusiasm might be overheated, he sees a profound economic shift on the horizon. Drawing from his extensive experience in the tech industry, Schmidt highlighted that the automation of routine tasks could lead to significant breakthroughs, particularly in fields that require complex problem-solving. He recounted a personal experience of witnessing an AI system generate an entire software program in real-time, describing it as a profound moment that underscored the rapid advancements in AI capabilities.
Despite skepticism from some quarters, including notable figures like economist Ruchir Sharma, who warns of the classic signs of a bubble, Schmidt remains optimistic about AI’s long-term impact. He argues that the current investments in AI are driven by the need to streamline operations and enhance efficiency in businesses. As organizations increasingly adopt AI technologies, Schmidt believes they will unlock new levels of productivity and innovation that have yet to be fully realized. The conversation around AI is evolving, and according to Schmidt, the real disruption is just beginning, suggesting that businesses should prepare for a transformative journey ahead as they embrace the full potential of artificial intelligence.
Ex-Google CEO Eric Schmidt says AI isn’t overhyped because the real payoff — automating the costly, boring backbone of business — is only just getting started.
Alexander Tamargo/Getty Images for America Business Forum
Eric Schmidt said AI is “under-hyped” because automating routine corporate work is still ahead.
He said firms use AI to automate the “boring” backbone of operations, such as billing.
Schmidt suggested that AI’s potential in medicine, climate, and logistics remains largely untapped.
If AI feels overhyped now,
Eric Schmidt
suggests that businesses should brace themselves — the real disruption hasn’t even begun yet.
In an interview with Professor Graham Allison at the John F. Kennedy Jr. Forum at Harvard University on Monday, the former Google CEO pushed back on the idea that AI’s rapid growth is a
speculative bubble
, saying that the technology is actually under-hyped.
“If anything, it’s under-hyped because you are fundamentally automating businesses,” he said.
The real transformation, he said, is happening deep inside companies, where AI systems are beginning to take over the “boring” tasks that quietly consume billions in corporate spending.
The
biggest gains
, he suggested, will come from automating the backbone of corporate work: the repeatable, time-consuming processes buried deep inside every organization.
The former Google chief listed billing, accounting, product design, delivery, and inventory management as examples of this.
“There’s an awful lot there — it’s extraordinary,” he said, pointing to areas like medicine, climate solutions, and engineering as sectors where automation could accelerate breakthroughs.
Schmidt, who helped steer Google’s early investments in AI and later co-authored a book on AI with Henry Kissinger, implied the technology’s economic impact will be far larger than markets or executives appreciate.
Still, not everyone agrees with that perspective. Some economists are sounding alarm bells that
the AI boom is overheated
.
In an interview this week, renowned economist Ruchir Sharma said the AI surge displays all four traits of a classic bubble and could unravel if interest rates rise, while tech leaders such as
Sam Altman
and
Bill Gates
have cautioned that parts of the market resemble the dot-com era.
Far beyond coding
To illustrate how quickly AI capabilities are advancing, Schmidt described watching an AI system generate an entire software program.
“Holy crap. The end of me,” he said.
“I’ve been doing programming for 55 years. To see something start and end in front of your own life is really profound,” he added.
However, he said that AI’s long-term upside extends far beyond coding.
From back-office workflows to logistics and scientific discovery, Schmidt believes the automation curve is still in its early stages of scaling and that Wall Street is underestimating the magnitude of the shift.
“The reason people are spending this amount of money,” he said, “is to automate the boring parts of their business.”
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Eric
Eric is a seasoned journalist covering Business news.
