The events of October 7 exposed shocking flaws in Israel’s security strategy and military readiness, leaving us embroiled in a war that demands immediate attention. While addressing immediate threats is crucial, we must adopt a broader perspective to ensure long-term security.
As a young soldier in the Golani Brigade, I found myself in a firefight in Lebanon alongside my commander, the legendary Brig.-Gen. Erez Gerstein, HY”D (“may Hashem avenge his blood”). Amidst the chaos, I noticed that Erez stood tall, observing the situation rather than taking cover or shooting. When the firing ceased, I asked him why he didn’t take cover. His reply was profound: “You can’t understand what’s going on around you if you are hiding or shooting. You have to stand above it all and look around. I saw you taking out the terrorists next to us. I needed to know if there were more.”
Israel stands at a pivotal moment, facing a revolution that will shape our future as profoundly as any technological breakthrough of the past. The rise of artificial intelligence (AI) is not just a scientific and economic milestone; it is a matter of national security. To safeguard our position and ensure our continued prosperity, Israel must commit to significantly increasing our investment and prioritization in AI.
The AI revolution is unlike any other. It promises to touch every aspect of our lives, from personal services to national decision-making processes. Historically, technological leaders have wielded significant influence. Just as the nuclear arms race defined the 20th century, the AI race will define the 21st century. Israel cannot afford to be left behind.
AI’s impact on national security cannot be overstated. In the coming years, there will be nations that harness the full potential of AI and those that do not. The former will dominate global economic trends, security measures, influence, and societal structures. We must ensure Israel is among the leaders. This means investing in supercomputing power, semiconductors, and human talent – three critical components of AI development.
“AI: The new frontier for Israel’s security” isn’t just a phrase; it is a reality we must embrace. Our nation has always thrived on innovation and resilience. Now, we must apply these strengths to artificial intelligence. Israel has a strong foundation to build upon.
Our country is home to some of the world’s brightest minds and cutting-edge technological companies. However, we must scale up our efforts significantly. The government’s current strategy is insufficient. We need a comprehensive, aggressive and well-funded national approach to secure our place at the forefront of this technological revolution.
Trajectory of AI in Israel
CONSIDER THE trajectory of AI development in Israel so far. We have seen Israeli start-ups harness AI to revolutionize cybersecurity, optimize agricultural yields, and enable earlier, more accurate disease detection. Despite these successes, our efforts remain fragmented and underfunded.
To lead in AI, we need to upgrade our national strategy to include substantial funding, alluring tax incentives, sophisticated talent acquisition, and massive infrastructure development. This means attracting investment of tens of billions of shekels, creating dedicated teams to bring the best minds back to Israel, and ensuring they have the resources needed to thrive. We must also establish a robust data infrastructure.
Billions allocated to cloud projects like Nimbus are a start, but we need immediate and coordinated action to pool government data and make it accessible for AI development. Additionally, we should introduce significant tax benefits for AI companies that qualify as advanced enterprises, incorporate in Israel, and establish primary R&D centers here. For example, they could benefit from a reduced corporate tax rate of 5%, instead of the standard 23%.
The private sector must play a pivotal role. Companies specializing in AI for financial services have shown AI can drive rapid growth and efficiency, reducing fraud and improving customer experiences. In addition to enhancing security, attracting investment of tens of billions in AI will reduce the cost of living, streamline government operations, and accelerate economic growth. It will also enhance our physical and economic security. As AI becomes integral to defense systems, healthcare, and critical infrastructure, leading in AI will ensure our security and prosperity.
The stakes are too high. We cannot afford to be overwhelmed by the war on our borders and miss the tectonic shifts that AI is causing in the world. Our government must prioritize AI investment and tax incentives over other expenditures that do not yield comparable returns. We must recognize that AI is a deflationary technology; it will lower costs and increase efficiency across sectors, benefiting every Israeli.
In the 20th century, Israel’s founding father David Ben-Gurion recognized the critical importance of developing nuclear capabilities for national security. He gave this mission his personal attention, holding meetings with leading scientists like Ernst David Bergmann, Chaim Weizmann, and Robert Oppenheimer. During his 1958 trip to the US, he personally met with Abe Feinberg and members of the Sonneborn Institute to raise funds to build the Dimona reactor. Just as Ben-Gurion boldly seized the nuclear opportunity due to the stakes, we must now seize the AI opportunity.
A bold strategy to attract foreign investment and provide tax incentives is not just an option; it is a necessity. Our future security, economic stability, and global influence depend on it. The time for action is now. We must ensure Israel remains a beacon of innovation and strength in the AI-driven world of tomorrow.
The writer is an Israeli businessman, thought leader, and activist.