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The world of artificial intelligence (AI) has undergone a significant shift in recent years. It has moved from what was known as “narrow AI”—an algorithm designed for a specific task—to the rise of generative AI. These new, sophisticated models can be easily adapted for various tasks, explained Ziv Katzir, head of the National Program for AI in Israel at the Israel Innovation Authority.
Katzir explained that in this new generation, the "borders" of AI are not well-defined. The science behind it is public. Once something is published—whether in an academic journal or by the private sector—it becomes much easier to replicate. This gives smaller countries like Israel an advantage. While Israel ranks among the top 10 in AI, it lacks the sheer numbers to develop countless models. Instead, it can take existing models and apply them in innovative ways (applied AI) to solve global challenges.
Katzir, who transitioned to his role about three years ago after working in the private sector, described the National Program for AI as a cross-cutting initiative that involves nearly all government ministries and agencies.
“We’re trying to maintain Israel’s leadership as an AI powerhouse,” he told the ILTV News Podcast, emphasizing that Israel consistently ranks just below the United States and China—two global AI leaders.
One key factor in Israel’s success is its deep talent pool and its ability to work across disciplines, a strength largely shaped by team structures in the Israel Defense Forces (IDF). However, to maintain its edge, Israel must attract even more talent, improve data accessibility, and navigate the legal and ethical complexities of AI.
“We need to strengthen the way the Israeli government itself uses AI in favor of citizens,” Katzir said. “We need to remove barriers in industry sectors that are more complicated: education, health care.”
The Israel Innovation Authority invests around 2 billion shekels annually in the high-tech sector, with close to 40% allocated to AI-related companies. Israel is home to 9,000 high-tech companies, of which 2,300 to 2,400 have AI at their core.
As the field evolves, the Authority is implementing proactive policies to expand Israel’s AI talent pool. It recently launched a program to attract foreign experts, returning Israelis, and Jewish professionals from abroad. It also encourages professionals from other nationalities to build their careers in Israel.
Additionally, the Authority has introduced a digital program aimed at increasing the number of AI experts within the IDF by integrating advanced academic degrees into military service.
“So, combining advanced academic degrees within the military service,” Katzir explained.
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Another initiative focuses on retraining researchers in other fields, such as chemistry and biology, to become AI experts within their own domains.
“If you get a PhD in biology or chemistry, you're probably much more suitable to become an AI expert than if you get your bachelor’s degree in computer science,” Katzir said.
As AI becomes more ingrained in daily life, most professionals will need retraining since their "toolbox is changing." However, that does not mean widespread unemployment.
“I don't think that machines are going to ever replace us,” Katzir said.
The Importance of Data
Katzir stressed that Israel’s biggest focus should be data. Managing data presents numerous challenges, including privacy, bias, and intellectual property rights (who owns the data?). He emphasized that the government must ensure the right data is available for research—but that is easier said than done.
For now, he believes Israel has struck a delicate balance between protecting citizens from AI misuse and advancing data-driven innovation.
“Israel has struck a good balance between trying to protect citizens from the potential misuse of AI and the really strong desire to push forward this data, to make it work, to make it do useful things,” he said.
AI’s Potential—and Its Risks
What happens if AI is misused? The technology is already being deployed to automate and scale up cyberattacks. Some fear it could be used to design resilient bacteria or toxins.
However, AI also holds enormous potential for good, as demonstrated by Israeli startups already leveraging it for positive change.
“Technology is always neutral,” Katzir noted. “The choice is always ours as societies and individuals. I think we typically choose the right way.”