Growing demand for AI to spare Israel from prolonged tech downturn
The medium-term prospects for Israel's AI sector look uniquely strong.
![An engineer sets up new beehives, part of the high-tech Beehome project, in Israel's Kibbutz Bet Haemek in the northern Galilee, on May 14, 2022. - They function as normal hives, but apiaries built at a kibbutz in Israel's Galilee are decked out with high-tech artificial intelligence systems set to ensure longevity for these vital pollinators. (Photo by JACK GUEZ / AFP) (Photo by JACK GUEZ/AFP via Getty Images)](/sites/default/files/styles/article_hero_medium/public/2023-04/GettyImages-1240734045.jpg?h=1d34674f&itok=VITGKlfm)
Al-Monitor Pro Members
David Rosenberg
Israeli reporter specializing in business, economics and politics
April 5, 2023
Israel’s artificial intelligence sector will struggle in the coming year to take full advantage of the rapidly growing demand for AI products and services due to a sharp drop globally in high-tech funding and a chronic shortage of AI talent. However, medium-term prospects remain robust due to the sector’s strong human capital base, large number of multinational companies present in Israel conducting research in the field, government support and cutting-edge academic research. The government’s decision March 27 to pause its controversial judicial-reform overhaul for now at least lifts a threat to the AI sector and the tech industry generally.
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