Growing demand for AI to spare Israel from prolonged tech downturn

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.