Israel Advances AI National Strategy With Modest Plans and High-Profile Appointments Ahead of Elections
In the weeks leading up to Israel's elections, the Prime Minister's Office has been promoting its newly established Artificial Intelligence (AI) National Headquarters. Earlier this month, Prime Minister Benjamin Netanyahu held a celebratory press conference to launch the AI headquarters and introduced its head, retired Brigadier General Erez Eskal, a former intelligence officer and commander of Unit 9900. The initiative has been supported publicly by Netanyahu's personal advisor, venture capitalist Michael Eisenberg, and recently accelerated with the appointment of Oren Dobronski, a venture capitalist and former Silicon Valley resident, who will manage AI efforts in the next government.
On Wednesday, the AI National Headquarters detailed its program at a press event in Ramat Gan, led by Eskal and staffed by personnel from the defense establishment, the Prime Minister's Office, and the Finance Ministry. Despite the high-profile appointments and polished presentation, the plan is cautious and limited compared to previous ambitious proposals. Key elements include introducing 30 annual hours of AI education in middle schools, acquiring 5,000 processors for Israeli supercomputers with a budget of about one billion shekels (in addition to an approved 1.1 billion shekels), developing a government AI language model, launching a tender for a quantum computer, and creating an "AI city" for robotic technology trials.
However, the program lacks detailed budgets and clear timelines, especially for the quantum computer and the AI language model, which remain under debate. The plan also does not address critical industry challenges such as the temporary halt on server farm electricity connections imposed by the Electricity Authority, which has stalled dozens of server farm projects and caused market disruptions.
This is Israel's fourth national AI plan in seven years, with previous efforts by Prof. Yaakov Ne'eman and others proposing far larger budgets and more comprehensive strategies, including a 25 billion shekel, five-year plan. Yet, political instability and bureaucratic hurdles have delayed implementation. The current AI headquarters operates with a 3 billion shekel budget for 2026, hoping to increase to 5 billion shekels post-election, but faces internal disagreements over processor purchases and the location of the supercomputer, with some plans to build it abroad.
Industry insiders criticize the fragmented approach and lack of coordination between government bodies, noting that the AI headquarters and Innovation Authority operate independently, causing confusion and inefficiency. The AI language model initiative, intended to reduce dependence on foreign companies like OpenAI and Anthropic, remains uncertain in leadership and development. Meanwhile, Israeli AI startups have struggled or been acquired by foreign firms. As the government continues to announce national AI plans, the local industry increasingly relies on private and international companies for advancement.
