AI REGULATIONS IN ISRAEL

In recent years, Israel has made significant strides in formulating and implementing a comprehensive strategy for the development and regulation of artificial intelligence (AI). One of the pivotal initiatives in this regard is the AI Strategy Recommendations by TELEM, the National Governmental Forum for R&D Infrastructure. Initiated in 2020, this cross-governmental effort involves key bodies such as the Israel Innovation Authority (IIA), the Defense R&D Directorate (DDRD), the Council for Higher Education (CHE), the Ministry of Finance, and the Ministry for Innovation, Science and Technology. The primary objective of this initiative is to craft a cohesive policy plan that promotes AI research and innovation across multiple sectors in Israel. This aligns with OECD AI principles, emphasizing inclusive growth, human-centered values, transparency, robustness, security, accountability, and international cooperation for trustworthy AI.

Furthering this mission, Government Resolution No. 173,  in 2023, aims to reinforce Israel’s technological leadership. This initiative, supported by the same key governmental bodies, seeks to bolster the high-tech sector by fostering innovation and providing a robust digital ecosystem for AI. The resolution underscores the importance of maintaining Israel’s competitive edge in the global technology arena, with an estimated annual budget of 50M-100M NIS.

Another significant effort, encapsulated in Government Resolution No. 212, launched in 2021, focuses on promoting innovation and the growth of the high-tech sector. This resolution includes various funding measures aimed at sustaining Israel’s leadership in technological innovation. It echoes the OECD AI principles and targets beneficiaries such as higher education institutes, postdoctoral researchers, PhD students, and firms of all sizes.

The Ministry of Health has also contributed with its Guiding Principles for the Development of Machine-Learning Based Technologies in Healthcare, started in 2023. This framework aims to ensure that AI and machine learning technologies in healthcare adhere to ethical guidelines while advancing technological capabilities. Key principles include human-centered values, transparency, robustness, security, and accountability.

In 2023, an inter-ministerial team was formed to explore the legal and regulatory implications of AI in the fintech sector. Comprising representatives from the Ministries of Finance, Justice, financial regulators, and the Competition Authority, this team is tasked with promoting innovation, removing barriers, and designing appropriate regulations for AI in financial services.

Moreover, the initiative to invest in localized Natural Language Processing (NLP) infrastructure, started in 2021, aims to develop NLP capabilities in Hebrew and Arabic. This effort, supported by a budget of 180M NIS over three years, seeks to bridge the technological gap between English and the local languages used in Israel, benefiting researchers and firms within the R&D ecosystem.

The Israel National Cyber Directorate, established in 2018 under the Prime Minister’s Office, focuses on enhancing national cybersecurity and advancing innovative cyber solutions. This agency plays a crucial role in defending Israel’s cyberspace and developing cyber manpower.

The National Initiative for Secured Intelligent Systems, launched in 2020, aims to position Israel among the top five countries in core technological areas within five years. This initiative supports national security, economic resilience, and social stability through advanced AI technologies.

Project Nimbus, a large-scale national cloud infrastructure initiative started in 2021, involves collaboration between the National Digital Agency, the Ministry of Finance, the National Cyber Directorate, and the Prime Minister’s Office. It aims to provide comprehensive cloud services within Israel, ensuring data security and supporting government operations.

Finally, Israel’s first comprehensive policy on AI Regulation and Ethics, unveiled in 2023, underscores the government’s commitment to responsible AI innovation. Developed by the Ministry for Innovation, Science and Technology and the Ministry of Justice, this policy addresses challenges such as bias, transparency, safety, accountability, and privacy. It sets forth guidelines for sectoral regulators to ensure that AI technologies are developed and used responsibly, fostering cooperation between the public and private sectors. This policy is built on principles of responsible innovation, viewing ethical design and technological advancement as complementary goals.

YEARPOLICY AND REGULATIONS
2018NATIONAL CYBER DIRECTORATE
2020AI STRATEGY RECOMMENDATIONS BY TELEM – THE NATIONAL GOVERNMENTAL FORUM FOR R&D INFRASTRUCTURE
2020NATIONAL INITIATIVE FOR SECURED INTELLIGENCE SYSTEMS
2021PROJECT NIMBUS – NATIONAL CLOUD INFRASTRUCTURE
2021BILL 5721 – 2021
2021GOVERNMENT RESOLUTION NO. 212: PROMOTING INNOVATION, HIGH-TECH SECTOR, AND TECHNOLOGICAL LEADERSHIP
2021INVESTMENT IN LOCALIZED NLP INFRASTRUCTURE
2023GOVERNMENT RESOLUTION NO. 173: STRENGTHNING ISRAEL’S GLOBAL TECHNOLOGICAL LEADERSHIP
2023GUIDING PRINCIPLES FOR THE DEVELOPMENT OF MACHINE-LEARNING BASED TECHNOLOGIES IN HEALTHCARE
2023INTER-MINISTERIAL TEAM EXPLORING LEGAL AND REGULATORY IMPLICATIONS OF AI IN FINTECH
2023ISRAEL’S POLICY ON AI REGULATIONS AND ETHICS