Israel Launches Second Phase of National AI Program with $132M Investment in R&D Infrastructure
The National Artificial Intelligence Program Administration implements recommendations of the National Digital Bureau and the TELEM Forum – which includes the Israel Innovation Authority, the Council for Higher Education, the Ministry of Defense’s Directorate of Defense Research and Development, the Ministry of Innovation, Science and Technology, and the Ministry of Finance – announced today the launch of the second phase of Israel’s National Artificial Intelligence Program.
This phase will run until 2027 with an allocated budget of NIS 500 million (~$132M). The funds will be invested in R&D infrastructure, including a National AI Research Institute that will serve as a platform for advanced, groundbreaking research in collaboration with Israeli and international academic researchers and industry professionals. Additionally, there will be significant efforts to develop human capital within academia and the military, aiming for major breakthroughs in Israel’s high-tech sector and the integration of AI into public services.
Minister of Innovation, Science, and Technology Gila Gamliel said: “The second phase of the National Artificial Intelligence Program strengthens our commitment to leading breakthroughs in the field. We will continue to invest in promoting research and development, high-tech industries, and human capital, while embedding AI in public services, particularly in local governance, with the goal of reducing disparities and making AI accessible to all Israeli citizens. We will establish a National AI Research Institute and encourage innovative ventures. All of this will be done responsibly, in line with the international agreements we have signed, to position Israel as a global leader in AI.”
Minister of Finance Bezalel Smotrich said: “Israel is taking a step forward. The National Artificial Intelligence Program seeks to harness AI’s immense capabilities and integrate them across a wide range of sectors including high-tech, science, the economy, citizen services, and more. The program will strengthen Israel’s high-tech industry and support the growth of our economy as a whole.”
Dr. Alon Stoppel, Chairman of the Israel Innovation Authority said: “Artificial intelligence is the type of disruptive technology that emerges once every few decades, and we are only at the start of understanding its impact. This technology will influence many aspects of how we live, operate, perform our work, and make decisions. Technological leadership in Israel will preserve and strengthen the country’s position in the tech market, its security capabilities, and national resilience. The second phase of the National AI Program is an important milestone in advancing Israel toward global leadership, reflecting, alongside complementary initiatives, the significance Israel places on this field.”
Dror Bin,CEO of the Israel Innovation Authority said: “AI is a key component in the global competition for technological innovation, and the second phase of this program will enable Israel to remain at the forefront of this field. The projects and initiatives within the National AI Program create excellent synergy between the high-tech industry, academia, and the public sector, allowing Israeli high-tech to maintain its global leadership.”
Head of Defense Research & Development (DDR&D) at the Ministry of Defense Brig. Gen. (Res.) Dr. Daniel Gold said: “Artificial intelligence is already impacting the battlefield today. Continued investment in the National AI Program presents a strategic opportunity to strengthen Israel’s national security. Integrating advanced AI technologies into the defense system will enhance operational decision-making and increase efficiency on the modern battlefield. We view the collaboration between the defense sector, academia, government ministries, and industry as a vital lever for technological leadership and maintaining the IDF’s qualitative edge.”
Shira Lev Ami, Head of the National Digital Bureau, said: “The inclusion of the National Digital Bureau in the National AI Program signals the growing use of advanced technologies in the public sector. AI is a transformative development that will change the way education, healthcare, welfare, transportation, and more are administered in Israel. The National Program, with its various facets, is of immense importance. Our partners—the Israel Innovation Authority, Ministry of Innovation, Science and Technology, Ministry of Finance, and the Telam Forum—are determined to make Israel a world leader in AI. We are here to ensure that the Israeli public sector leverages data and AI tools to improve public services and foster smart, effective governance.”
Prof. Yossi Makori, Chair of the Council for Higher Education said: “The promotion of AI and data sciences was a flagship project for the Council even before I took office. The program included the establishment and upgrading of research centers at universities alongside Ph.D. scholarships. A few years later, the Council joined the National AI and Data Sciences Program. I welcome the continued government investment in advancing these fields, particularly through human capital development and groundbreaking research. There is no doubt that the implications will be far-reaching and will impact every aspect of our lives.”
Yogev Gardos, Head of the Budgets Division in the Finance Ministry said: “I am pleased to welcome the second phase of the National AI Program. This initiative, set to be implemented in the coming years, includes strategic elements such as an AI research institute that will bring together researchers from academia and industry, investment in human capital across academia, the military, and industry, and enhancing the public sector with AI tools. The implementation of these components will strengthen Israel’s global leadership in research and development, while promoting growth and supporting the economy during this challenging time.”
The second phase focuses on several new areas, including:
AI Integration in the Public Sector and Local Authorities: Improving public services and enhancing government system efficiency are central to this phase, with an emphasis on competitive processes to support innovative public sector projects. These projects will focus on improving citizen service quality, strengthening decision-making capabilities, and making public systems more efficient and cost-effective. Additionally, a knowledge hub and research center will be established to provide professional support to government ministries and local authorities in AI policy.
Preserving Israel’s Leadership in AI Research: A National AI Research Institute will be established, serving as a platform for advanced, cutting-edge research in collaboration with both Israeli and international academia and industry. Additionally, ‘Moonshot’ challenge projects will be launched, focusing on scientific breakthroughs and their application in industry and defense. These projects will connect groundbreaking research with high-tech and defense technology, enabling Israel to lead globally in critical areas.
Expanding Human Capital in the Industry: Expanding human capital is a central component of the second phase, aiming to meet the needs of industry, academia, and the military in AI. A key goal is to develop a specialized training program in the IDF, creating a central source of hundreds of technology experts specializing in AI. Efforts will also be made to attract international experts by offering incentives for academics and professionals from abroad to immigrate to Israel and contribute to the field.
Access to Data and Information: The second phase will encourage leveraging Israel’s existing data repositories for AI R&D. Government data and unique datasets collected over the years will be made accessible to researchers and tech companies, serving as the foundation for new research and innovative developments. This is expected to accelerate R&D processes and give Israel a competitive edge internationally.
Encouraging Transformative High-Tech Ventures: Significant investment will be made in breakthrough technological ventures in the high-tech industry, which have the potential to transform various fields. These ventures will focus on developments that lead to technological leaps in Israeli industry and promote new, innovative fields in the Israeli economy. In heavily regulated fields, government intervention will be required to encourage experimentation and remove barriers.
The second phase will also continue to promote areas addressed in the first phase of the program, including:
Expanding academic faculty reserves through advanced degree scholarship programs to increase the number of AI researchers and enhance research capabilities in the field.
Ongoing work on regulation, ethics, and international cooperation, focusing on developing regulatory tools to ensure the ethical use of AI. Additionally, there will be an emphasis on strengthening international relations and partnerships with other countries, research bodies, and industries.
Ziv Katzir, Director of the National AI Program, said: “The second phase of the program is a critical stage in maintaining Israel’s position as a leading power in artificial intelligence. This is a broad strategic initiative that combines forces and resources from various government entities, leading industries, and academic research institutions. This collaboration will not only help Israel maintain its competitive edge in the global market but also enhance its capabilities in critical areas such as technological innovation, the development of advanced tools, and robust research infrastructures. Katzir added that the initiative is based on Israel’s unique advantages, including human capital, entrepreneurial skills, and advanced research and development approaches, which will serve as a catalyst for creating significant value for Israel’s economy and the future of AI in the country.”