"How would you feel if your neighbor went over and bought a commercial observation drone that they can launch from their backyard. It just flies over your house all day. How would you feel about it?" Schmidt asked during an interview with the British newspaper The Guardian.
"I'm not going to pass judgment on whether armies should exist, but I would prefer to not spread and democratize the ability to fight war to every single human being," he said, referring to the possibility that a terrorist group could operate drones that could be capable of even more harmful activity than simply taking pictures.
Schmidt, who advises U.S. President Barack Obama on technology issues, said drones have recently been used for police work in India as a means of tracking poachers, the BBC reported Saturday.
Drones are widely associated with military use, having been put to use by U.S. and Israeli defense forces.
"It's got to be regulated. ... It's one thing for governments, who have some legitimacy in what they're doing, but have other people doing it ... it's not going to happen," Schmidt said.