Growing demand for AI to spare Israel from prolonged tech downturn


Al-Monitor Pro Members


David Rosenberg

Israeli reporter specializing in business, economics and politics


April 5, 2023

Bottom Line:

Israel’s artificial intelligence sector will struggle in the coming year to take full advantage of the rapidly growing demand for AI products and services due to a sharp drop globally in high-tech funding and a chronic shortage of AI talent. However, medium-term prospects remain robust due to the sector’s strong human capital base, large number of multinational companies present in Israel conducting research in the field, government support and cutting-edge academic research. The government’s decision March 27 to pause its controversial judicial-reform overhaul for now at least lifts a threat to the AI sector and the tech industry generally.

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