Israeli Companies Push Ahead With AI for Business Management Despite Implementation Challenges

Israeli Companies Push Ahead with AI in Business Management Despite Challenges

More than half of Israeli companies report difficulties in implementing Artificial Intelligence (AI) technologies, yet many continue to invest in AI to improve business management and strategy. According to recent data, the rate of companies abandoning AI pilot projects has risen sharply—to 42% from 17% the previous year.

Despite these hurdles, the Israeli government actively supports AI integration. The Israel Innovation Authority invested around 7 million shekels last year in programs that bring foreign AI experts into the country. This initiative aims to accelerate AI adoption across both public and private sectors.

Leading Companies and Their AI Initiatives

Several companies stand out for their practical AI applications:

• Elad Systems offers workshops guiding organizations on how to implement AI effectively. Their approach combines training with actionable outcomes to boost organizational agility and deliver measurable business value.
• Priority Software, partly owned by Blackstone, developed aiERP, an AI-based system designed to enhance business management processes.
• Scoutt uses AI to match software developers with tech companies, streamlining recruitment. According to Scoutt’s CEO, Yair Rozilio, this approach helps companies overcome fears about AI by demonstrating its role as a tool that strengthens human teams through precise matching.

Government Focus on AI Leadership and Sovereignty

Israel’s National Program for Artificial Intelligence, published in April 2025, outlines clear goals:

• Achieve global leadership in AI innovation and application.
• Preserve and expand technological sovereignty and maintain a qualitative edge.
• Implement AI capabilities within national and municipal government operations.

Currently, about 25% of high-tech companies in Israel specialize in AI, reflecting the sector’s growing importance.

What This Means for Executives and Strategy Professionals

For executives steering business strategy, the Israeli experience highlights key lessons:

• Expect challenges: AI adoption is complex. Over 50% of companies face implementation issues, and nearly half of pilot projects may be abandoned.
• Invest in expertise: Government-backed programs bringing in AI specialists can accelerate progress.
• Integrate learning and action: Workshops or training sessions should tie directly into real-world implementation to boost agility and value.
• Position AI as an enabler: Emphasize AI’s role in augmenting teams rather than replacing them to ease organizational resistance.

Executives interested in strengthening their AI capabilities can explore practical courses and training options, such as those offered at Complete AI Training.