Israel's National AI Plan Approved Five Months Late, Lacks Budget Details

Israel's government approved its National Artificial Intelligence Acceleration Plan on June 16, 2026, approximately five months after the initial deadline of January 19, 2026. The plan, established by a government decision on September 21, 2025, aims to position Israel at the forefront of AI development. Prime Minister Benjamin Netanyahu championed the initiative, stating, "In this revolution, Israel will not be a spectator. Israel will be at the forefront." The plan outlines ambitious goals, including establishing a national processing power capacity of at least 100,000 GPU accelerators and a national quantum computer, alongside efforts to attract international investment for a 5-nanometer chip fabrication plant.

However, the approved plan, a 96-page document dated August 2026, falls short on crucial details, particularly regarding funding. While it specifies infrastructure targets, it leaves the exact funding mechanisms and budget undefined, deferring these to a future "full implementation plan." This lack of concrete financial commitment has drawn criticism, especially considering the significant investments made by other global powers in AI infrastructure. The plan itself acknowledges the substantial costs, noting that the US invested over $400 billion in computing infrastructure in 2025, China nearly $100 billion, and India tens of billions.

The National AI Directorate, established as a subordinate unit within the Prime Minister's Office and headed by retired Major General Erez Eshel, is tasked with leading this initiative. The government allocated 20 full-time equivalent positions and NIS 15 million annually for the directorate's operational expenses, starting in 2027. This budget is for the directorate's operations, not the overall program, the funding for which remains unspecified.

A special report by the State Comptroller in June 2026, prior to the plan's approval, highlighted deficiencies in government preparedness for AI. The report noted that a national plan should include a vision, objectives, milestones, clear governmental responsibility, timelines, a budget, and measurement and control mechanisms. The AI plan, as approved, omits specific timelines, a budget, and detailed control mechanisms, with governmental responsibility vaguely assigned to various ministries without clear leadership designation.

Despite these shortcomings, the National AI Directorate and the Ministry of Finance's Accountant General announced on August 4, 2026, the release of tenders and calls for proposals to begin implementing the plan. The directorate is also mandated to report progress to the government quarterly and publicly annually, though the first public report is yet to be released.