National Program for Artificial Intelligence
Israel · Strategy · Ministry of Innovation, Science and Technology; Ministry of Finance; Ministry of Defense's Directorate of Defense Research and Development; Council for Higher Education's Planning and Budgeting Committee; Innovation Authority; National Digital Agency; Ministry of Foreign Affairs; Ministry of Justice
Our summary
Israel's coordinated multi-year strategy launched in 2021 to strengthen the country's position as a global AI leader across research, industry, and governance. The program pursues five main objectives: reinforcing computational and research infrastructure, accelerating AI adoption in high-tech sectors, implementing AI tools in public administration, securing Israel's technological sovereignty, and preparing government ministries for AI-driven transformation. It is led by a central directorate coordinating multiple government agencies and supported by a scientific advisory committee.
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Inside this policy
Every section of this policy in order. Our notes summarise each one in plain language and do not quote the official text, which is the authority.
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Executive Summary
Israel's National Program for Artificial Intelligence (2021-2026), budgeted at approximately one billion Israeli new shekels, aims to strengthen Israel's AI leadership through five main objectives: reinforcing AI infrastructure and research including computational resources and natural language processing in Hebrew and Arabic; creating advances in AI adoption in regulated high-potential sectors; implementing AI in government to improve services and decision-making; securing Israel's technological sovereignty and influence over global AI standards; and promoting national-level AI adoption through ministry preparation and workforce skills development. Main actions include promoting academic excellence and applied research, strengthening research infrastructure and data accessibility, advancing AI implementation in the public sector, establishing regulatory sandboxes, and leading international AI collaborations, while the program excludes defense-related AI preparations. The program develops Israel's AI regulatory framework by fostering responsible innovation while safeguarding citizens and their rights from AI risks, balancing innovation with protecting fundamental and human rights and global coordination.
Introduction
Israel's national AI strategy aims to establish computational, data, and talent infrastructures, support regulatory sandboxes, integrate AI into government operations, strengthen global technological position, and enhance public understanding of AI's benefits and risks. The strategy pursues global AI leadership to improve living standards and economic growth, building on prior government resolutions on AI and digital transformation, including a government cloud project. The strategy addresses challenges from rapid advances in generative AI since 2022 and requires cooperation among government, academia, industry, and society.
Chapter 1 World-Changing Artificial Intelligence
The section traces AI's history from its 1956 founding through decades of stagnation to renewed growth in the early 21st century driven by computational power and algorithmic advances, with generative AI launched in November 2022 transforming AI into disruptive infrastructure enabling diverse applications and surpassing human performance in many benchmarks. It discusses generative AI's role in advancing toward Artificial General Intelligence and AI agents capable of performing diverse tasks in physical and digital environments, including humanoid robots. Israel is positioned as a global leader, ranking 9th by the Tortoise Global AI Index, 4th in AI talent concentration, and 6th in notable models developed, with strengths in research and development, commercialization, and talent concentration.
Chapter 2 AI Investment Race
Global AI investment has grown sharply since 2019 with the US leading, followed by China and Europe, while Israeli venture capital in AI exceeds 11% of GDP with the second-highest AI companies per capita after Singapore; Israeli generative AI investment rose 85% from 2020 to 2023, far below US growth of 900% and European growth of 300%, and global AI adoption is projected to generate annual economic streamlining of $2.6 trillion to $4.4 trillion with profitability increases of 9% in high-tech, 4% in banking, 3% in healthcare and education, and 3% in insurance and media. Israel shows comparative strength in AI and Data Operations and vertical and horizontal applications but moderate growth potential in hardware infrastructure and model security. Governments worldwide are investing substantially in AI infrastructure and research: the US committed $50 billion through the CHIPS program, China allocated $150 billion for chip investment targeting 2030, and Saudi Arabia, the UAE, the UK, France, and India combined invested $40 billion in GPU purchases and computational infrastructure; other countries launched comprehensive programs including Canada's $2.4 billion for AI research and adoption, Japan's $740 million for generative AI leadership, Singapore's $743 million for a five-year program starting 2024, and Germany's EUR 1.6 billion to promote research and EU collaborations.
Chapter 3 Artificial Intelligence in Israel
Israel ranks among the world's leading countries in AI research and development but has declined in global rankings from fifth to ninth place within four years, facing a significant gap between technological capabilities and business and government adoption of AI (4% of Israeli businesses reported AI use in 2021 versus 7% in the European Union), with barriers including lack of Hebrew and Arabic language processing capabilities (estimated cost tens of millions of dollars for development), limited public confidence (62% of Israelis concerned about AI in government services, 86% rating privacy as highly important), and challenges in AI talent despite Israel ranking first globally in talent concentration (47% of AI entrepreneurs hold advanced degrees versus 39% in other high-tech fields, with stagnating advanced degree graduates in computer science, mathematics, and statistics). Israeli researchers published 0.5% of global AI papers in 2017-2023 but garnered 2.1% of citations with strengths in natural language processing and computer vision; Israel ranks high on talent, research and development, and commercialization but lower on infrastructure (26th), operational environment (65th), and government strategy (32nd) in the Tortoise AI Index. Government agencies began receiving funding in May 2024 for sector-wide AI implementation, with plans for infrastructure improvement, data sharing, workforce development, and simplified procurement.
Chapter 4 Global Regulatory Response to AI Challenges, Comparative View
Global AI governance frameworks include the 2019 OECD Trustworthy AI Principles (updated 2024) addressing inclusive growth, human rights, transparency, security and accountability; the Council of Europe's legally enforceable treaty finalized in May 2024 requiring risk assessment and management across AI's lifecycle while excluding military and security applications (signed by Israel in September 2024); and the EU's comprehensive legislation categorizing systems as unacceptable-risk (forbidden), high-risk (permitted with strict limitations), or low-risk (minimal constraints), with penalties up to EUR 35M or 7% of global turnover, contrasting with the US sectoral approach via executive orders. Israel's regulatory policy pursues sectoral rather than general regulation aligned with leading countries, applies risk-based approaches following OECD principles, supports incremental development through regulatory sandboxes, and emphasizes collaboration with industry, academia and civil society.
Chapter 5 National Program for Artificial Intelligence in Israel
Israel's National Program for Artificial Intelligence aims to maintain the country's leading global position through five main objectives: strengthening AI research and infrastructure including computational resources and Hebrew and Arabic language processing; advancing AI adoption in high-tech industry through regulatory sandboxes and pilot projects; implementing AI in the public sector to improve services and decision-making; and securing Israel's geo-technological position through strategic partnerships and international AI standards. The program, established through coordination by the Telem Forum with a central directorate and scientific committee, has been allocated one billion NIS over two three-year phases and addresses research, talent and infrastructure gaps by establishing access to computing and language processing infrastructure, creating data assets and research facilities, expanding academic research through scholarships and a national AI research institute, attracting overseas experts, and establishing regulatory sandboxes in promising sectors. Tasks also include establishing a governmental AI regulation and policy center, promoting AI projects across government and municipal levels, integrating AI into education at all levels, supporting labour market transitions through skill development programs, and pursuing international leadership in AI capabilities and global regulation.
Chapter 6 Objective I, Artificial Intelligence Infrastructures Promoting Research, Talent, and Infrastructure Accessibility
Chapter 7 Objective II, AI in High-Tech
To develop high-tech AI capabilities, the program establishes career-change programs for graduates in life sciences, chemistry, and physics, and attracts foreign AI researchers through three chosen entities that recruit and place international experts and returning Israelis in Israeli companies, with the goal of enabling these entities to continue organic expansion after initial government support ceases. The program proposes establishing regulatory sandboxes and pilot projects in fields with regulatory barriers to enable collaborative learning between technology developers and regulators in controlled settings, supporting technology maturation in early R&D stages through evidence-based testing while ensuring public safety. In regulated areas where industry shows interest, regulatory barriers exist, and significant financial potential is present, the program calls for establishing experimentation sandboxes involving identification of barriers, examination of whether to modify regulatory conditions while protecting public interests, stakeholder engagement, multi-stage pilot programs, and mutual learning between companies improving their technology and regulators assessing actual risks and benefits.
Chapter 8 Objective III, AI in the Public Sector Safe AI, Implementation of AI Knowledge, Capabilities, and Tools
The government will establish a knowledge and coordination center advised by the Ministry of Justice to regulate AI adoption across sectors and lead an inner-governmental regulatory coordination forum and public multi-stakeholder consultation forum to promote uniform implementation and identify regulatory gaps. Government entities must map AI applications in regulated sectors and implement a framework promoting public sector AI projects through guidelines, training, a central platform with shared AI tools, and inter-sectoral teams, while a steering committee will fund and oversee flagship AI projects selected competitively based on management commitment, technological maturity, public impact and scalability, and risk management mechanisms. The program will publish three guides on AI use for government users, responsible and lawful deployment, and procurement decisions, establish civil servant training on AI capabilities and risks, encourage use of AI tools including generative models, and create a multi-year plan to integrate AI into municipal services.
Chapter 9 Objective IV, Establishing Israel’s Global Geo-Technological Status in AI
Israel will strengthen its R&D infrastructures and capabilities to enhance global standing, enable international research collaborations, influence international regulatory frameworks and standardization, promote its AI capabilities internationally, and preserve technological independence and freedom of action. Israel participates in international organizations including the OECD, Council of Europe, UN, and AI Safety Institutes to integrate Israeli perspectives into global regulatory policy and learn from other countries. An inter-ministerial team coordinates government ministries' international AI efforts quarterly to promote a unified approach in global forums.
Chapter 10 Objective V, AI at the National Level Preparation for the Impact of AI on Government Ministries’ Domains
1 section
This objective requires government ministries to continuously assess artificial intelligence impacts within their sectors and develop corresponding action plans. Ministries must monitor effects on labor markets, training needs, social impacts, supply chains, and other domain-specific consequences, with education already having a complete plan and employment efforts underway.
Appendix, Performance Indicators
The program sets targets for establishing computational infrastructure labs, operating 1-3 data assets, creating separate designated language models for Hebrew and Arabic and for common linguistic use cases, awarding about 260 scholarships over 7 years, training 100 AI experts per year in the defense system, operating 3 moonshot projects, and completing 3 annual calls for proposals for AI adoption in government entities. Performance targets include establishing an active cross-government regulatory knowledge center, conducting 4 meetings yearly of a regulators forum and expert advisory group, publishing an AI ethics and regulation policy paper, participating in all leading international AI framework discussions and strengthening bilateral collaboration with 3 leading countries annually, meeting quarterly with an inter-ministerial committee, and maintaining Israel's position in the top ten of various AI indices.
Controls
What this policy requires, forbids, grants or penalises, one control at a time and in our own words. Each control links to the official text, which is the authority. This is not legal advice.
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Themes covered 3 of 35
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Risk and scope 0 of 4
- Risk classification, not covered
- Prohibited practices, not covered
- Risk management system, not covered
- Impact assessment, not covered
Data and privacy 0 of 4
- Data governance and quality, not covered
- Data subject rights and consent, not covered
- Cross-border data transfer, not covered
- Copyright and training data, not covered
Transparency and records 0 of 4
- Transparency and disclosure to users, not covered
- Labelling of synthetic content, not covered
- Technical documentation, not covered
- Record keeping and logging, not covered
Technical safeguards 0 of 4
- Human oversight, not covered
- Accuracy, robustness and cybersecurity, not covered
- Bias and non-discrimination, not covered
- Testing and evaluation, not covered
Assurance and lifecycle 1 of 4
- Conformity assessment and certification, not covered
- Incident and breach reporting, not covered
- Post-market monitoring and corrective action, not covered
Rights and protected groups 0 of 4
- Automated decision-making rights, not covered
- Children and vulnerable groups, not covered
- Biometric identification and surveillance, not covered
- Whistleblowing, complaints and redress, not covered
Roles and organisation 2 of 6
- Supply chain and provider-deployer duties, not covered
- General purpose and foundation models, not covered
- Public sector use and procurement, not covered
- Innovation support and sandboxes, not covered
Enforcement and sectors 0 of 5
- Enforcement, penalties and regulators, not covered
- Sector rules: health, not covered
- Sector rules: finance and insurance, not covered
- Sector rules: employment, not covered
- Sector rules: education, not covered
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Chapter 7 2 controls
- ObligationApplies to: Public authorityDrafted by the Index
The government should establish career-change programs that enable graduates in scientific fields to transition into artificial intelligence roles.
- ObligationApplies to: Public authorityDrafted by the Index
The government should recruit artificial intelligence researchers from overseas, including returning residents, new immigrants, and foreign experts, to work in Israeli high-tech companies.
Chapter 8 3 controls
- ObligationApplies to: Public authorityDrafted by the Index
The government should establish a governmental knowledge and coordination center to manage artificial intelligence regulation, policy, ethics, data governance and public-sector adoption.
- ObligationApplies to: Public authorityDrafted by the Index
The government should create forums that bring together regulators and multiple stakeholders to coordinate on artificial intelligence regulation and policy.
- ObligationApplies to: Public authorityDrafted by the Index
The government should map artificial intelligence applications across regulated sectors and identify the accompanying risks and legal implications.
Chapter 9 3 controls
- ObligationApplies to: Public authorityDrafted by the Index
The government should strengthen Israel's research and development infrastructures in artificial intelligence to enhance the country's technological independence and international standing.
- ObligationApplies to: Public authorityDrafted by the Index
The government should participate in shaping international regulations and standards for artificial intelligence.
- ObligationApplies to: Public authorityDrafted by the Index
The government should establish an inter-ministerial committee to coordinate artificial intelligence collaboration across government agencies.
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