Israeli computer geniuses – most of them coming from the Israel Defense Forces – are among the best in the world in cybersecurity, but the country is far from leading in artificial intelligence (AI,) with only a moderate increase in generative-AI investments compared to the global surge, and an expected shortage of human capital in the field
Gen-AI, including Chat-GPT and Dall-E2, can generate 2-D or 3-D images, videos, text in story form and other medical in seconds within a request for them via computer users. It “learns” and is trained on texts and images that already exist online. The incredible growth of generative AI is due mostly to the fact that people can use natural language to prompt AI research, writing, designing, coding, and more.
It is hugely popular for easily writing material that used to take students days or weeks to research and will surely put many professionals out of their jobs.
Generative AI models use neural networks to identify patterns in existing data to generate new content. Trained on unsupervised and semi-supervised learning approaches, organizations can create foundation models from large, unlabeled data sets, essentially forming a base for AI systems to perform tasks.
The fact that Israelis are behind in Gen-AI has been “diagnosed” by RISE Israel (formerly SNPI), is a non-profit independent think tank that promotes a competitive, sustainable, and innovation-driven economy.
It says its mission is to propose and assist in the implementation of strategies and practical policy measures for the Israeli economy, along with harnessing technological solutions to improve citizens’ lives and address national challenges.
Enhancing Israeli society
Its “AI Forward: Unlocking AI’s Potential for the Future of Israel” is a joint project with Google Israel to enhance the lives of Israelis by leveraging the AI revolution, with the goal of developing and implementing AI policies and regulations to benefit both Israel’s society and economy.
There are some 2,300 active AI companies in Israel, a quarter of the local hi-tech sector, of which more than 60% are software companies. About 50% of the startups established in 2023 report using AI technology. Nearly half of the total investments in Israeli high-tech in 2023 were in AI companies, according to RISE.
RISE is focusing on five key fields that are set to have the most significant impact on the lives of Israeli citizens. It’s one of a few research and academic centers around the world selected by Google.org to shape the future of AI policy and draw the guidelines for strategy and government policy in the field of artificial intelligence.
A new and comprehensive research by RISE Israel Institute and Google Israel shows that the field of artificial intelligence in Israel is growing, with about half of investments and funding rounds in 2023. The increase in investments in Gen-AI-based startups in Israel is significantly lower compared to the world, the think tank heads said.
“Israeli laymen believe that artificial intelligence will positively impact transportation and education – but they are significantly concerned about the impact on employment and losing their jobs,” they added.
The research is part of the “AI Forward” project to promote and implement AI policy for the benefit of society and the economy in Israel.
RISE and Google Israel are publishing new comprehensive research that analyzes the country’s artificial intelligence landscape. The study reviews the number of Israeli AI startups and the level of investment in them, alongside a global comparison of the growth rate. The research examines the gaps in human capital and academia, and public sentiment towards AI on key issues while comparing it to different countries around the world.
The increase in investments in Gen-AI-based startups in Israel is significantly lower compared to the world: an increase of 85% between 2020 to2023, compared to 900% in the US and 300% in Europe; the growth there is more than nine times and three times greater, respectively.)
AI jobs here rely on employees with advanced degrees (over 60%), but the number of master’s degree graduates in computer science, mathematics, and statistics reaches less than 700 a year, while the number of doctoral-degree graduates stagnated at around 100 per year. About 15% of master’s-degree graduates and 21% of Ph.D. graduates in computer science move abroad. Women founders are more represented in AI startups than in other high-tech companies, yet they still account for just 13% of all founders.
While about 55% of Israelis did not believe that AI had a significant influence on their lives in past years, over 80% anticipate it will in the next three to five years. Nearly half of Israelis public expres some level of nervousness about AI, similar to the global average. However, about 80% of Israelis see more benefits than drawbacks in AI technology, much higher than the global average of about 55%.
The sectors in which Israelis anticipate the impact of AI will be the most significant are education, transportation, and employment. More than 60% of the respondents said they expect the change in education and transportation to be positive, but only a third believe that the impact on employment will be positive.
Recently launched, the RISE project is directed by a steering committee made up of Israeli innovation leaders: Boaz Maoz, managing director of Google Cloud Israel (chairman of the steering committee); Prof. Eugene Kandel, chairman of RISE Israel; Shai-Lee Spigelman, former CEO of the Ministry of Innovation, Science and Technology; Dr. Lital Helman, a law and technology expert; Uri Eliabayev, AI consultant; Shimrit Bainhoren, CEO of Maoz; and Mahmoud Rahman, former senior deputy director at the Finance Ministry.
Since 2006, with the opening of its first development center in Israel, Google has been committed to the continued growth of the ‘Startup Nation’ and the Israeli high-tech industry. Today, the company's development centers lead innovative technological work in the company's core products such as search, Waze, artificial intelligence, chip development, and more. In the research center, the teams focus on developing AI-based tools and technologies to address challenges related to climate, health, and education, and building AI-based infrastructure in the company's products.
In addition, Google said it supports startups in their early stages through the “Google for Startups” campus and helps expand the activities of Israeli companies in the international market. At the beginning of 2022, Google announced a $25 million investment program over five years to integrate quality manpower from underrepresented populations, with an emphasis on AI skills, and in 2023, established a fund to support promising startups in the AI fields.
Maoz declared that “RISE Israel’s research clearly indicates that the field of AI is strengthening in Israel and its impact is expected to change the future of the local economy. AI can also improve the lives of Israeli citizens, in a variety of fields from education to health and transportation. We believe that the knowledge accumulated in the Startup Nation, along with an organized strategy, that learns from local startups already operating in the field, will change the future of the State of Israel.”
Kandel concluded that “the AI revolution is a fait accompli, and Israel cannot afford not to be a leading country in the field. Beyond the importance of maintaining its competitiveness in the global race, the adoption of artificial intelligence can dramatically improve the quality of life of Israelis. I express my gratitude to Google for the cooperation in this important project, which will hopefully lead to a new reality in Israel.”