Haredi Community Could Become Israel’s Next Major Growth Engine Through AI and Tech Integration

The Israeli election campaign has heavily focused on issues related to the Haredi community, including military conscription, budgets, core education, and religion-state relations. However, a crucial question remains largely unasked: what if the Haredi sector is viewed not just as an economic challenge but as a significant growth opportunity? This question is especially relevant now due to two simultaneous revolutions in Israel: a demographic one, with a rapidly growing and youthful Haredi population entering the workforce, and a technological one, driven by artificial intelligence (AI).

The intersection of these trends presents a unique opportunity. Historically, Haredi women faced barriers entering the high-tech industry due to educational gaps compared to university graduates or experienced tech unit veterans. AI is beginning to level this playing field by enabling faster learning and productivity, effectively resetting experience requirements. Moreover, AI’s expansion beyond high-tech into sectors like banking, healthcare, manufacturing, insurance, retail, and public services will increase demand for tech-savvy workers.

Over the past decade, thousands of Haredi women have quietly entered the tech workforce through tailored training programs that respect their lifestyle. Employment rates among Haredi women have risen from about 50% in the early 2000s to approximately 81% today, nearly matching non-Haredi Jewish women’s 82.5%. Their representation in high-tech increased from 3% in 2014 to 4.9% in 2024, now constituting 5.6% of all women in Israel’s high-tech sector. Despite this progress, Haredi women’s tech employment rate remains about half that of non-Haredi Jewish women, and their average salary is still only 67% of their non-Haredi counterparts.

These figures highlight the untapped potential within the Haredi community. When appropriate pathways are created, there is no need to demand societal change as a precondition for integration. Instead, identifying talent and aligning it with economic needs benefits workers, families, companies, and the state alike. Alongside women, a new generation of Haredi tech entrepreneurs is emerging.

Looking ahead, envision thousands of Haredi women developing and implementing AI systems across Israel’s economy, alongside Haredi entrepreneurs founding tomorrow’s companies. This growth will not come from trying to change the Haredi community but through high-level training and connecting Haredi talent to sectors where Israel’s economy requires it. This approach is not philanthropy or mere social policy but a strategic growth plan. Israel stands at a rare crossroads where one of the youngest populations in the Western world meets a technological revolution. Successfully linking these could transform the Haredi community from an economic challenge into a key driver of Israel’s future growth within a decade.

The article is authored by Moshe Friedman, founder and CEO of Kama-Tech and 12A Venture Capital, organizations dedicated to integrating Haredim into high-tech and promoting Haredi technological entrepreneurship.