ByYONAH JEREMY BOB

JUNE 16, 2026 15:50

Updated: JUNE 16, 2026 16:21

Although Israel maintains a strong position in cybersecurity and applies artificial intelligence effectively within that domain, the nation trails in broader AI applications and is now working to close the distance.

On Tuesday, officials endorsed an extensive set of AI strategies designed to ignite growth and transform daily routines for Israelis across employment, learning, and ultimately all facets of existence amid global progress in this fast-evolving sector.

The move follows Prime Minister Benjamin Netanyahu naming former 9900 intelligence leader, Brig. Gen. (res.) Erez Askal on October 12, 2025, as the nation's inaugural AI Chief, collaborating with Israel National Cyber Directorate (INCD) head Yossi Karadi.

Askal has since focused on pinpointing key areas where Israel needs advancement in AI adoption and insight, while identifying optimal ways to capitalize on national assets through a sustained, multi-year initiative.

The Jerusalem Post has learned that the fresh AI office has highlighted Israel's top assets in this field as 1) Merging cybersecurity with artificial intelligence so each enhances the other; and 2) Edge solutions - developing hands-on innovations to tackle issues directly in operational settings and during conflicts at the front lines.

Additionally, the longstanding professional ties between Askal and INCD Chief Karadi from their intelligence service days enable seamless, ego-free collaboration.

What will the AI bureau achieve?

The AI bureau anticipates support for: 1) Israel developing and deploying its own solutions instead of depending on overseas options; 2) Local firms producing tangible goods that generate revenue; 3) Crafting balanced rules to organize this emerging space without excessive constraints that hinder creativity; and 4) Combining large-scale data analysis and machine learning with practical challenges to yield innovative outcomes.

After the cabinet approval, Netanyahu remarked, "The purpose is clear: to establish Israel as a world leader in the area of AI because AI is not just another technology - it is a revolution. It will impact the economy, security, science, industry, health, education, and the State of Israel's international status."

Askal noted, "This decision ensures the power and achievements of Israel for the upcoming decades. In the coming years, it will become clear which countries succeed in establishing their place at the forefront of the world during the age of AI, and which will be forced to rely on the technology, infrastructure, and capabilities which others will develop."

At a June 2 conference, Askal emphasized publicly, "While the great powers in the world are preoccupied with a crazy-paced arms race regarding the major layers of AI: research and development, energy, and modeling, the entire world is stuck in the embarrassing situation asking: what do we do with this tomorrow morning?"

"This is exactly where Israel's comparative advantage exists: when the giant blue Ocean of AI meets [people's] real lives. The ability to inject AI into the physical world and onto [solving] life's problems, to take an aircraft or drip irrigation and to make them 'smarter' - is a critical growth engine for us."

Why is Israel behind on AI?

Askal avoids publicly discussing certain initial setbacks Israel faced in AI due to the sensitivity of his role.

These setbacks stem from Israel's limited land for data centers, scarce natural resources to meet their high energy demands, and a cybersecurity success largely propelled by private enterprise with government trailing behind, in contrast to AI initiatives that require substantial state backing where official processes move more deliberately.

Consequently, the AI bureau aims to assume a coordinating function, guiding private entities toward unified national AI objectives beyond individual commercial priorities.

Thus the government may avoid constructing major AI infrastructure independently yet will promote and enable numerous initiatives, some sizable, while acting to eliminate bureaucratic obstacles that could impede progress.

One initiative targets education, with Israeli universities partnering with Askal to introduce a new AI degree program starting in October.

While computer science degrees persist, the AI program may gradually replace them as more aligned with evolving employment demands.

This applies at the starting level.

For those already employed, around one million Israelis, and potentially as many as four million in certain cases, may require partial or full retraining to retain positions or transition to different roles.

A further large-scale effort involves constructing high-capacity, costly data centers across Israel, with emphasis on the Negev region in the south.

The Tuesday government decision pledges development of roughly 100,000 GPUs for AI data centers.

Back in mid-May, the Wall Street Journal indicated, and the Post confirms, that the US is considering a secure AI facility in the Negev to safeguard advanced tech from China and reinforce American leadership in AI.

US and Israeli representatives have collaborated on a joint plan referred to in Israel as Project Spire. The envisioned site would blend US military-level security with the innovative environment of a leading tech center.

The proposal has focused on three sites suggested by Israel in the western Negev.

Israel would grant land via extended lease for American operations, with the complex supporting research, server infrastructure, energy systems, chip design, AI training, and possible semiconductor manufacturing.

Moreover, Askal plans expanded global partnerships on AI with numerous nations.

This forms part of wider actions by Askal's team and the government to expand new AI data centers in the Negev and additional locations.

Until recently, various hurdles delayed data center construction approvals for years, unlike faster processes in places such as Texas that complete reviews in months.

Askal seeks to accelerate approvals and draw additional Israeli investment to this sector, with some participants already active since late 2025 and further interest in 2026.

Last week, Calcalist covered sessions involving Israeli delegates at a major AI and data center event in Cannes led by Shelly Landsmann, ex-CEO of Microsoft Israel and now founding partner at data center firm NED along with serving as advisory board chair.

Also last week, Kardan Israel revealed a new subsidiary to manage its data center operations, including holdings in server facilities in Kfar Saba and Shoham.

Another key player is Ofer Yanai, majority owner of Nofar Energy, who recently acquired land in Shoham for NIS 361 million to build a fresh data center, as reported by Calcalist.

Firms like MedOne with four existing Israeli sites; Bynet operating in Shoham, Jerusalem, and Tel Aviv; and Bezeq International with a Petah Tikva communications hub have long participated and now aim to expand substantially.

The government decision adds funding for Israeli quantum computers, renewing prior allocations that had been exhausted.

Per the decision, new entities will form, including an institute to spot and apply major AI accelerators across industries and life sectors, plus dedicated work on physical AI and countering deep fake AI.