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CalcalistTech

Israel's Election Could Determine Its Future as an AI-Driven Nation

Translated & summarized from Calcalist by baba

BusinessCharged tone

Hebrew · Sole source

Israel's upcoming October 27 election is framed as a critical decision point for the nation's future as an "AI Nation." While campaigns focus on traditional issues, the article argues Israel should leverage its unique scale and proven implementation capabilities to build a society around AI, rather than trying to develop the core technology itself. The proposal includes integrating AI education across all levels and sectors to boost productivity and prepare the workforce for an AI-driven economy, with other nations already making significant strides in this area.

The story in 5 lines · by baba

  • Israel's October 27 election is presented as a choice on whether the nation will become the first "AI Nation."
  • The country should focus on building a society around AI, leveraging its scale and implementation experience, rather than developing core AI technology.
  • A national initiative proposes integrating practical AI education for all high school students and military/national service personnel.
  • This AI integration aims to transform the broader economy and boost productivity in sectors beyond traditional high-tech.
  • Several countries, including Saudi Arabia and Estonia, are already implementing significant AI education programs for their populations.

Israeli citizens will vote for their next government on October 27, with campaigns focusing on security, cost of living, education, health, and justice. However, while politics debates the present, the world is building the future economy, with Artificial Intelligence (AI) evolving from a tech sector into a fundamental infrastructure. Israel, though lacking the capital, computing power, or market size to develop massive AI models, can instead build a nation around it, leveraging its unique scale. With 10.2 million people and approximately 180,000 young individuals in each age cohort, Israel has a population size sufficient to transform its economy and train an entire generation in AI.

Within five years, fewer than a million young Israelis will pass through schools, the military, universities, and vocational training. This contrasts with the US, where four million young people are in each cohort across a fragmented educational system. Israel's proven ability for rapid national implementation, demonstrated by its swift COVID-19 vaccination campaign in 2021, positions it to integrate AI effectively. Currently, about 400,000 Israelis work in high-tech, representing 11.5% of the workforce and contributing 18% of GDP and 57% of exports. Yet, two-thirds of Israelis work in sectors with below-average productivity, presenting an opportunity to infuse high-tech capabilities across the entire economy.

The proposal is to equip every high school student with practical AI skills and for the IDF and national service to provide tens of thousands of young people with experience operating intelligent systems. This would involve an "AI-native" education, integrating AI into language, science, art, and economics studies, and introducing new fields like AI Design and AI Sales. Such a national initiative could expand the tech-savvy workforce to one million within two to three generations, even before AI-driven productivity gains are realized.

The government must lead by example, adopting AI in public services to avoid sending citizens on bureaucratic wild goose chases. This initiative should be a top priority for the next prime minister, as other nations are rapidly advancing. Saudi Arabia has integrated AI into its education system for millions of students and requires AI courses for all bachelor's degrees. Estonia offers AI tools to most high school students, Singapore incorporates AI into subjects and mandates teacher training, and Colombia has legislated mandatory AI studies. While Sweden and Portugal, similar in size to Israel, have not yet presented comprehensive plans, no country combines Israel's advantages: an economy-moving scale, a strong tech industry, and a national system like the military that nearly all youth pass through.

Shari Brunfeld, a partner at venture capital fund NFX, argues that Israel cannot build the world's AI but can become the first nation built around it, capitalizing on its suitable size, experience in rapid national implementation, and a closing window of opportunity before other countries surpass it. The upcoming election, therefore, is not just about choosing a government but about deciding if Israel will become an "AI Nation."

CalcalistOther · Tel Aviv

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