In the Global Artificial Intelligence Race: Where Does Israel Stand So Far?

SadaNews - A report from Bank of America revealed that the United States and China continue to dominate the global artificial intelligence race, while other countries, including Israel, the UAE, South Korea, Canada, Switzerland, the Netherlands, and Singapore, are competing for the next ranks. The report evaluates countries based on their current readiness to develop artificial intelligence technologies, as well as their ability to leverage these technologies for economic growth in the coming years.

In assessing the readiness of countries over the next three years, Israel ranked 12th out of 30 countries included in the report. It also recorded strong performance in private sector investments in AI companies, the number of companies operating in this sector, in addition to its role in producing and supplying chips used in artificial intelligence tools. Conversely, Israel ranked lower when evaluating the availability of energy resources necessary to operate data centers, the availability of minerals used in the manufacturing of chips and computing equipment, and the infrastructure required to establish these centers, especially when compared to countries like Canada, Australia, Norway, and France.

The report indicated that Israel ranked fifth globally in the volume of private sector investments in AI companies, which reached $19 billion between 2013 and 2025, and also ranked fifth in terms of the number of companies operating in the sector, following the United States, China, Canada, and the United Kingdom. Furthermore, it is projected to lead the world in 2025 in terms of the percentage of specialized talents in artificial intelligence, as specialists in this field made up 2.1% of LinkedIn users in Israel, compared to 1.8% in Singapore and 1.6% in Luxembourg, noting that this indicator is based on LinkedIn data.

On the other hand, the report clarified that Israel did not make the list of the top ten countries in terms of government investment in artificial intelligence, and it also ranked 19th in energy readiness, and 22nd out of 30 in data center establishment costs, despite having natural gas reserves and opening new data centers in recent years. The report noted that Israel's advanced chip manufacturing sector enhances its position within the supply chains for AI chips to the United States.

In evaluating the ability of countries to leverage artificial intelligence for economic growth over the next 3 to 10 years, Israel ranked 10th, ahead of the Netherlands, Germany, and Taiwan. This ranking was based on several factors such as the flexibility of the work environment, research and development capabilities, and the extent of AI technology usage within startups and development centers. Conversely, the report warned that Israel could be more susceptible to disruptions in the labor market due to a high percentage of jobs relying on analysis, planning, programming, and other cognitive tasks, which are likely to be more affected by the expansion of artificial intelligence usage. However, it is anticipated that its lower average age compared to European countries suffering from aging populations, along with its economy's ability to adapt, will help transform artificial intelligence into a driver of economic growth.

The report indicated that South Korea topped the ranking in evaluating country readiness over the next three years, as well as in assessing its ability to translate artificial intelligence usage into economic growth in 3 to 10 years, while the UAE excelled in the second assessment due to 70% of companies utilizing AI technologies, along with a government policy benefiting from abundant energy resources like oil, within a plan aimed at making the country the world leader in this field by 2031. The report also pointed out that restrictions on exporting advanced technologies and security considerations may limit some countries' ability to access the latest artificial intelligence models, in addition to difficulties in obtaining the servers, chips, and computing infrastructure necessary to operate and develop them.