Israel’s AI Push: Comptroller Flags Gaps, Government Approves New Policies, Bennett Forms Advisory Committee

Israel’s AI Push: Comptroller Flags Gaps, Government Approves New Policies, Bennett Forms Advisory Committee

Recent developments in Israel’s artificial intelligence (AI) sector present a mixed picture, as the government moves to accelerate adoption while an official audit warns of persistent gaps. Three separate announcements—from the State Comptroller, the government, and former Prime Minister Naftali Bennett—paint a complex landscape of ambition, caution, and political maneuvering.

State Comptroller Audit Warns of Lagging Government Adoption

According to findings published by the State Comptroller, Israel risks falling behind in government use of artificial intelligence despite its strengths in high-tech, research, and human capital. The multinational audit, led by State Comptroller Matanyahu Englman in his role as president of the European Organization of Regional Audit Institutions, examined government preparedness for AI with the participation of 12 European countries.

Englman described an “innovation paradox”: Israel possesses the technological capabilities of a high-tech power, yet has not translated them into a comprehensive, coordinated, and executable government plan for AI adoption. The audit found that public bodies are pushing ahead with AI tools, but gaps in budgets, data governance, procurement, and national planning are slowing the shift from pilots to full implementation.

Englman was quoted as saying: “Artificial intelligence is not a future issue. It is already changing the way governments operate.” He added that audit institutions must examine government preparations before the risks materialize, not after. The findings emphasized that AI adoption in government must improve public service while protecting individual rights and public trust, strengthening transparency, safeguarding human rights, and ensuring responsible use of state resources.

The report noted that although the government adopted the recommendations of the Nagel Committee in September 2025 under Government Decision 3375 and ordered the establishment of the National Artificial Intelligence Headquarters in the Prime Minister’s Office, no national AI roadmap has yet been implemented. The audit highlighted that only 18% of public bodies reported adopting a defined organizational strategy or policy for integrating AI.

Government Approves New AI Policies

Just days later, on June 16, the government approved a new, wide-ranging series of AI policies, as reported by the Jerusalem Post. The decision culminates Prime Minister Benjamin Netanyahu’s appointment in October 2025 of Brig. Gen. (res.) Erez Askal as the country’s first AI Chief, working alongside Israel National Cyber Directorate (INCD) Chief Yossi Karadi.

According to the report, the new AI bureau’s efforts have identified Israel’s greatest strengths: integrating cybersecurity and AI, and developing edge solutions—practical new ideas for solving problems in the field and in war. The bureau expects to help Israel implement home-developed solutions rather than foreign ones, enable Israeli companies to manufacture profitable products, and pursue regulations to create order in the sector.

A separate article, also from the Jerusalem Post, stated that the government approved a new series of AI policies that could spark change in the workplace, education, and other areas, as Israel seeks to catch up in the broader AI context after being behind. The decision was described as the culmination of Askal’s work since his appointment to identify fronts where Israel must move forward and leverage its strengths over a multi-year campaign.

Additionally, a report cited that Israel is building data centers in the Negev desert and will invest in building Israeli quantum computers, though specific details were not elaborated in the provided text.

Bennett Establishes AI Advisory Committee

On June 18, former Prime Minister Naftali Bennett announced the establishment of an advisory committee on artificial intelligence ahead of the upcoming elections, according to his office. The committee is aimed at advancing and developing a long-term national policy on AI, boosting the country’s technological edge, and positioning Israel as a global and regional leader in AI.

Bennett’s Together Party, which merged with opposition leader Yair Lapid’s Yesh Atid in April, is one of the leading parties in the opposition bloc seeking to replace Prime Minister Netanyahu. The elections are set to take place no later than October 27.

The AI advisory committee will work to develop policy recommendations for the government in areas including innovation, education, regulation, and security. It is also expected to examine the opportunities and challenges posed by AI for the economy, society, and security, and to promote the use of AI technologies for the benefit of the public.

Perspectives: A Government in Flux

The 2026 developments occur against a backdrop of political competition, with elections looming. The government, under Netanyahu, has taken steps to establish an AI bureau and approve policies, but the Comptroller’s audit suggests implementation lags. Meanwhile, Bennett, a challenger, is positioning himself as a leader on AI policy, appealing to voters concerned about Israel’s global standing in technology.

These reports, all sourced from the Jerusalem Post, reflect a nation grappling with how to harness its technological strengths while addressing institutional inertia and preparing for a future where AI is central to governance, security, and economic competitiveness.