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Share of Israeli Businesses Using AI in Production and Services Increases Sharply

Israeli businesses report a sharp increase in AI adoption, now at 39%, with significant growth seen in construction and commerce industries, according to new.

Jerusalem, 28 April, 2026 (TPS-IL) — The proportion of Israeli businesses that use Artificial Intelligence in the production of products and services has increased significantly and stands at 39%, compared to approximately 28% in June 2025. This is according to data released by Israel’s Central Bureau of Statistics.

In the construction and commerce industries, there has been a sharp increase in the use of artificial intelligence (in construction – from 6% in June 2025 to 21% in the current survey, and in commerce – from 17% to 31%, respectively).

The scope of use of Artificial Intelligence in business activity is widespread across all industries and ranges from 21% of businesses in the construction industry to 65% of businesses in high-tech.

Of the businesses in the high-tech industries that use artificial intelligence, 54% do so through paid services. Across all economic sectors, it was found that more than 21% of businesses use artificial intelligence (paid/free).

In small businesses (10-50 employees), usage increased to 37% of businesses (from 28% in June 2025), and in large businesses (more than 250 employees), usage increased to approximately 52% of businesses (from 34% in June 2025).

Of all businesses in the survey population, 21% of businesses use artificial intelligence for tasks previously performed by employees.

Of the businesses that use artificial intelligence, 38% use it to perform technical and routine tasks previously performed by employees, and about 17% use it for complex tasks.

Approximately 31% of businesses in the high-tech and finance industries also use artificial intelligence to perform complex tasks.

Approximately 88% of all businesses (in terms of employees) that use artificial intelligence responded that its use does not affect the scope of employment in their company, similar to the estimate received in June 2025 (approximately 89%).

About 4% stated that the use of artificial intelligence reduced the recruitment of new employees.

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Gil Tanenbaum