A new study conducted by the Institute for Policy and Research Israel rises In collaboration with Google, an examination of Israel's place in the global AI race reveals some troubling trends, including only a moderate rise in investment in generative AI compared to other countries, and an expected shortage of the local workforce in this field. On the positive side, the study found that 50% of investment and fundraising rounds in the technology sector in 2023 were in the field of generative artificial intelligence.
According to the figures in the study, although Israel has a prominent position in the global AI field, according to Tortoise Media's Global AI Index, which represents a weighted average of various aspects of artificial intelligence, its ranking has declined over the years.
Israel currently ranks seventh globally in this index, down from fifth place in 2020. Singapore, which has invested heavily in artificial intelligence, jumped from 10th place to third place in the same period. Another worrying trend revealed by the study relates to human capital. AI jobs in Israel rely on people with higher degrees, in more than 60% of all jobs.
Fewer than 700 graduates with second degrees in computer science, mathematics and statistics join the workforce in Israel each year, while the number of PhDs in these disciplines does not exceed about 100 annually. Moreover, about 15% of those with second degrees and 21% of those with doctorates in computer science are part of the brain drain from Israel to other countries.
However, the study found that about 50% of the total investment and number of financing rounds in Israeli technology companies in 2023 were in artificial intelligence companies, and these companies tend to attract more investments than others. Nearly 70% of AI companies currently active in Israel have raised capital, compared to 55% of other high-tech companies.
The study also found that about 2,300 companies in Israel are active in the field of artificial intelligence, representing 25% of the entire local technology sector. 60% of it is in software. Nearly half of startups founded in the past year reported using AI technology. Of the companies established in the past five years, more than a third are active in this field.
R&D centers of multinational companies are promoting artificial intelligence
One of the strengths of the Israeli industry, according to the study, is the local activity of research and development centers affiliated with international companies. In April this year, more than 100 multinational companies were conducting research and development in the field of artificial intelligence in Israel. For example, Google's Israeli center deals with integrating AI into the company's products, and is developing AI-based technologies and tools to deal with a range of challenges in areas such as climate, health and education.
Related articles
Israeli startups raised more than $1 billion in April
AI compliance in the US: Israel's technology nightmare
Nvidia's AI spending spree in Israel has a downside
Another example is semiconductor giant Nvidia. Its R&D center in Israel is heavily involved in developing communications chips and components for its supercomputers. There is also a three-year collaboration launched in 2022 between IBM, the Technion, and Hebrew University, aiming to advance research into new AI solutions for natural language processing, accelerating drug discovery, and multi-cloud computing for decentralized applications. Amnesty International.
Delay in implementation
According to the study, although Israel excels in technological development, it is largely unsuccessful in implementing innovation. This doesn't just apply to artificial intelligence. The report says Israel lags behind in adopting transportation, finance and education technologies, even though its technology industry produces international-standard research and development in these areas. “Without proactive policy, this pattern will repeat itself in AI as well, and will limit the realization of the social and economic potential of this technology,” the report said.
The goal of the study is to formulate and implement policies and regulations related to artificial intelligence for the benefit of Israeli society and its economy, in the areas that have the greatest impact on the lives of Israelis.
The AI Forward project, which was launched over the past few days, is managed by a steering committee made up of senior AI officials in Israel, including Boaz Maoz, managing director of Google Cloud Israel, who is the chair of the committee; President of RISE Israel Professor Eugene Kandel; Shai-Li Spiegelman, former Director General of the Ministry of Innovation and Science; Dr.. Lital Hellman, Export Law and Technology; Artificial Intelligence Consultant Uri Eliabayev; Shimrit Beinhorn, Executive Director of Maoz Leadership Development Organization; And Mahmoud Rahman, former Deputy Wages Commissioner at the Ministry of Finance.
“The AI revolution is a reality, and Israel cannot fail to be a leading country in this field. Besides the importance of maintaining Israel’s competitiveness in the global race, the adoption of AI has the potential to significantly improve the quality of life of Israeli citizens,” said Professor Kandel.
“The AI Forward project has set the goal of helping to formulate and implement an advanced, forward-looking AI strategy and policy. I thank Google for its cooperation on this important project, which we hope will lead to a new reality in Israel,” Kandel added.
Published by Globes, Israel Business News – en.globes.co.il – on May 22, 2024.
© Copyright Globes Publisher Itonut (1983) Ltd., 2024.
