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Israel Artificial Intelligence Partnering Opportunities

Israel launches the national AI program to enhance government services

Israel’s Artificial Intelligence (AI) industry is flourishing, earning global recognition for its innovation and research capabilities. The country has established itself as a prominent technology and startup hub, with AI playing a key role in its dynamic ecosystem. The Israeli government is actively committed to supporting the AI sector, implementing diverse initiatives, grants, and policies to stimulate innovation and entrepreneurship.

In late summer of 2023, Israel marked a significant milestone by initiating the first stage of its NIS 500 million (~$133 million USD) National AI program. This program called upon directors-general from various governmental ministries to submit their strategies for seamlessly integrating AI into their operational frameworks.

The field of AI in Israel has witnessed remarkable and unprecedented growth in recent years. The potential impact of AI on the economy and society is immense, reflecting the country’s dedication to harnessing the transformative power of AI.

The national AI program, overseen by the Ministry of Innovation, Science, and Technology, aims to revolutionize operational systems across various government sectors. Its primary objectives include improving the internal functions of the government and ultimately delivering enhanced services to the citizens of Israel.

This program received approval as part of the Arrangements Law and successfully passed through the Knesset alongside the budget. The initiatives under this program are designed to address longstanding challenges within the government’s internal operations, fostering efficiency in the public sector, and placing a significant focus on enhancing citizen services.

Collaboration with key entities such as the National Digital Agency, the Israel Innovation Authority, the Finance Ministry, and the Justice Ministry will play a crucial role in the selection and execution of projects aimed at achieving these goals. The collective efforts of these organizations signify a comprehensive approach to leveraging AI for the betterment of governmental processes and services in Israel.

Given the current Israel-Hamas War, the implementation of this initiative may face delays. However, it’s evident that the Israeli government considers AI a priority industry. The government’s endorsement and investment are influencing the AI private sector, and the market size in AI is projected to reach $1.94 billion in 2024, with an anticipated annual growth rate of nearly 16% by 2030.

Therefore, the collaboration in the AI sector between the United States and Israel is crucial, opening avenues for increased cooperation. This is especially significant given the U.S.’s leadership in AI development. The partnership is expected to have a far-reaching impact, covering a diverse range of industries, including healthcare, eCommerce, banking, financial services, travel, and more.

U.S. Companies interested in learning more about AI industry in Israel, you may contact