Israel invests NIS 500m in R&D infrastructure to keep pace in global AI race
Funds for the program will be allocated to create a national AI research institute, expand human capital, and integrate AI models across government services
Sharon Wrobel is a tech reporter for The Times of Israel.
Israel has earmarked NIS 500 million ($133 million) for education and critical R&D and data infrastructure to help the country keep pace with the global advancements in the development and adoption of artificial technology models.
The investment, part of the National Artificial Intelligence Program, is geared to help Israel maintain and strengthen its position as a global leader in light of the fast evolving technology.
Led by the Israel Innovation Authority, which is in charge of setting out the nation’s tech policy, the funds will be invested in R&D infrastructure, including the launch of a national institute that will aim to foster advanced research in collaboration with Israeli and international experts across academia, industry, and the military.
The program, which is funded until 2027, will prioritize the development of AI skills in academia and the military, as there is a shortage of human capital in the field, and seek to establish a robust talent pipeline.
Part of the initiative is plans for a specialized IDF training program to turn out hundreds of tech experts specializing in AI. Israel’s elite military intelligence and technology units, such as the famed 8200, already have a track record of graduates who became founders and CEOs of some of the world’s most successful tech and cybersecurity firms.
To attract global talent, Israel plans to offer incentives for AI academics and international experts from abroad to immigrate to Israel.
“Artificial intelligence is the type of disruptive technology that emerges once every few decades, and we are only at the start of understanding its impact,” said Israel Innovation Authority chairman Alon Stoppel. “This technology will influence many aspects of how we live, operate, perform our work, and make decisions.”
“Technological leadership in Israel will preserve and strengthen the country’s position in the tech market, its security capabilities, and national resilience,” Stoppel declared.
Israel still ranks among the top 10 ecosystems for AI, but it is far from unlocking the full potential of the revolutionary technology as competition in the global AI race intensifies. Over the past year, industry leaders and tech entrepreneurs have raised concerns that Israel is missing the AI wave and needs to implement a long-term strategy to allocate money and resources to boost education and academic research, encourage startups, and provide the infrastructure and computational power needed to run AI models.
The investment for the launch of a national AI research institute and initiatives to expand human capital in the field comes as Israel is almost 12 months into a war with the Hamas terror group, and thousands of tech workers and startup founders have been called up for reserve duty. The prolonged war alongside uncertainty about the extent and duration of the fighting have slowed down investments for the development and growth of local AI startups.
“Artificial intelligence is already impacting the battlefield today,” said Brig. Gen. (Res.) Dr. Daniel Gold, dead of Defense Research & Development (DDR&D) at the Defense Ministry. “Integrating advanced AI technologies into the defense system will enhance operational decision-making and increase efficiency on the modern battlefield.”
“We view the collaboration between the defense sector, academia, government ministries, and industry as a vital lever for technological leadership and maintaining the IDF’s qualitative edge,” Gold added.
As part of the program, funds also will be allocated to integrate AI technologies in the public sector and local authorities to improve services and make them quicker and more easily accessible by cutting bureaucracy and administrative burdens. In addition, a knowledge hub and research center will be established to provide professional support to government ministries and local authorities in AI policy.
“AI is a transformative development that will change the way education, healthcare, welfare, transportation, and more are administered in Israel,” said Shira Lev Ami, head of the National Digital Bureau. “We are here to ensure that the Israeli public sector leverages data and AI tools to improve public services and foster smart, effective governance.”
