The Subcommittee on Artificial Intelligence and Advanced Technologies convened on Tuesday to discuss the findings of the Nagel Committee on the acceleration of the field of artificial intelligence (AI) in Israel.
Subcommittee Chair MK Orit Farkash Hacohen (Blue and White – National Unity Party) said, “The findings of the report paint a troubling picture of Israel‘s current position and warn that, in the absence of swift and determined action, we may continue to lose ground and miss the opportunity to maintain our status as the ‘start-up nation’ and a global technological power. Our goal is to ensure that Israel not only responds to changes — but leads them. Today’s discussion revealed a complex yet clear picture: clear potential with a huge gap in execution, with Israel developing a strategic and alarming lag in the field of artificial intelligence compared to the rest of the world.
“Again and again, we hear and understand that the age of artificial intelligence is an explosion that will crown some nations and crush others. In the end, the test will be in execution — and here, the committee’s recommendations were not adopted in the government’s decision at all. We must ask whether a directorate without powers within the prime minister‘s Office is the right structure. Furthermore, the report calls for funding through an across-the-board cut of 0.2% in the 2026 budget — a budget that has not yet been approved, so there is uncertainty about its actual financing. Clarification is needed on what will happen to the allocation in the event of early elections, and how we can ensure significant and continuous budgetary support independent of the political situation,” she said.
Prof. Yaakov Nagel, chair of the governmental committee for accelerating AI development, said, “What’s important this time is the seriousness — that within a very short period after submitting the recommendations, the prime minister and the relevant ministers established a directorate. In the committee’s work, we defined metrics that will allow us over the coming years to assess and evaluate the progress of the new directorate. While the Americans have invested $500 million, and the Emirates, Saudis, Europeans, and Chinese have invested billions — even hundreds of billions — up until last year, Israel invested barely one billion shekels annually. My conclusions are that we must build up human capital in academia. To be effective and lead a country in artificial intelligence, in rare cases a master’s degree may suffice, but ideally, you need professors capable of training the next generation of [experts]. If we will not have qualified people to teach the next generation — we won’t have that generation, not in the military and not in the civilian sector.
“We have several recommendations whose implementation will cost a few hundred million shekels annually: to bring in foreign experts, to send Israelis for training abroad, to build small laboratories, to strengthen the academic foundation and draw those people to the field.”
Prof. Nagel added: “The committee met people already employed in AI who said we are in an excellent position — but others, not yet employed in the field, said we’re in decline. The truth is that Israel was once in a very high position in high-tech. It’s like the joke about the man who falls from the penthouse — when asked on the 11th floor how he’s doing, he replies, ‘So far, so good.’ We’re doing okay for now — but we must quickly return Israel to the top floor.”
Col. (res.) Ryan Giti, secretary of the Nagel Committee, presented the conclusions after four months of intensive work, which included over 40 meetings with ministers, directors general, university presidents, researchers, entrepreneurs, and senior figures in government and the international community. “The committee concludes that Israel is not currently in a strong starting position to join the ranks of the world’s AI leaders, due to the absence of a coordinated national strategy, limited budgets, fragmentation among ministries, and a severe shortage of infrastructure and expert personnel,” he said. “However, the committee emphasizes that Israel has the potential to lead, if a rapid governmental decision is made to implement the recommendations.
“The world is now in the midst of a fast-paced global race, in which the U.S., China, the European Union, and the Gulf states are investing hundreds of billions of dollars in AI infrastructure, energy, and research. In contrast, in Israel, the amount of resources allocated towards this matter is significantly smaller, and failure to act could result in the loss of its ‘start-up nation’ status,” Giti said.
Among the key recommendations presented: Establishing a National Artificial Intelligence Directorate, reporting directly to the Prime Minister — an independent, flexible, and well-funded body with unique regulatory powers, modeled after the Defense Advanced Research Projects Agency of the U.S. Department of Defense— a step that has already been implemented; building a state-owned national supercomputer with around 60,000 GPU units within three years, supported by advanced energy infrastructure; extensive investment in human capital — from excellence programs for youth and high school students, through specialized academic programs, to the return of researchers and talent from abroad; establishing a national AI research institute and opening national data repositories for academia and industry; investing in energy and electricity infrastructure to support the sector’s needs, alongside incentives and programs to boost Israel’s AI industry.
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Erez Askal, head of the newly established National AI Directorate, said “It’s encouraging to see so many people who wake up every morning determined to realize the potential of artificial intelligence for the benefit of Israel’s citizens. I was impressed that the Prime Minister is very interested in the subject and determined to push the field forward. If I distill the main points from the report, they revolve around three pillars: enabling regulation, computing infrastructure, and high-quality human capital. At this stage, I still have some questions about what exactly is required, but within 90 days, I will present the Government with a comprehensive strategic plan: where we want to go, what the vision is, what currently holds the market back, and how to reach our goals — including a detailed list of necessary actions.
“We will strive to be very practical and results-oriented. I am looking for the best people — those ready to roll up their sleeves and get to work. We came to accelerate, and fast, because we are somewhat behind. Some believe AI has already peaked — that is absolutely not true; the major leap is still ahead of us. When we talk about artificial intelligence, it is crucial to be precise: we must know what we should invest billions in. We will focus on what really matters, and we’re open to listen, learn, and consult with as many people as possible. I approach this matter with the utmost seriousness,” he told the subcommittee.
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