Israel AI The Booming AI Industry in Israel
The Booming AI Industry in Israel – A Look at Leading Companies and Technologies
Israel has become a major global hub for artificial intelligence (AI) innovation and home to some of the most exciting advancements in this field. This in-depth article will explore the key AI companies in Israel, the technologies they are developing, VC funding trends, applications across industries, and the factors that have led to Israel’s dominance in AI.
The Rise of AI in Israel
- Israel has over 1,150 active AI startups, the highest concentration globally outside of the US and China.
- Israeli AI startups raised $2.32 billion in VC funding in 2021, a 55% increase from 2020.
- The number of AI companies founded per year has grown 4X since 2015.
- Machine learning makes up over 50% of Israel’s AI landscape.
- Over 25 multinational tech giants have R&D centers focused on AI in Israel including Google, Amazon, Microsoft, Intel, IBM, and Samsung.
- The Israeli government plans to invest $855 million in AI R&D initiatives by 2025.
Key Factors in Israel’s Success in AI
Deep Tech Talent Pool
With top engineering universities like Technion and Hebrew University, Israel has a highly educated talent base with deep expertise in math, statistics, and computer science – key skills for AI.
Military Intelligence Experience
Israel’s elite military intelligence Unit 8200 produces many entrepreneurs adept in analytics, cybersecurity, and big data – critical foundations for AI.
Government Support
Israel has designated AI a national priority with generous funding for academic research and incentives like tax breaks to attract AI labs.
Multinational R&D Centers
Global tech giants seeking access to Israeli talent have opened R&D centers, providing funding and resources for local startups.
VC Funding Ecosystem
Israel has one of the most developed VC ecosystems globally with investors keen to fund innovative Israeli AI startups.
Leading AI Categories and Use Cases
AI innovation in Israel spans a variety of technological categories and industries:
Computer Vision
Using machine learning for image recognition and visual perception. Applications in defense, manufacturing, autonomous vehicles, medical imaging and more.
Key Companies: AnyVision, Vayyar, Trigo, Keepmed, Aidoc, Anodot
Natural Language Processing
Processing and generating human-like text and speech. Enables applications like chatbots, text analytics, personalized content.
Key Companies: Gong, Playbuzz, Audioburst, Bonobo.ai, Talkspace
Cybersecurity
Leveraging AI techniques like machine learning to detect network intrusions, malware, fraud and enhance cyber defense.
Key Companies: Cynet, SentinelOne, Mitiga, Axis Security, SAM Seamless Networks
Finance
AI is transforming financial services. Applications in fraud prevention, personalized recommendations, predictive analytics and more.
Key Companies: eToro, BlueVine, Personetics, Pagaya
Autonomous Vehicles
Computer vision, deep learning and sensor fusion techniques enable self-driving capabilities in vehicles and drones.
Key Companies: Mobileye, Waycare, Brodmann17, TriEye, Autotalks
Healthcare
From rapid medical imaging analysis to early disease diagnosis and personalized medicine, AI is revolutionizing healthcare.
Key Companies: Zebra Medical, Aidoc, Diagnostic Robotics, Medial EarlySign
Top Artificial Intelligence Startups in Israel
Here are some of the most innovative and well-funded AI startups in Israel:
1. Anthropic – Conversational AI
Founded: 2021
Funding: $700 million
Anthropic develops AI assistants powered by natural language processing to understand complex human instructions and complete tasks through conversation.
2. Prospera – Computer Vision for Agriculture
Founded: 2014
Funding: $100 million
Prospera applies computer vision and deep learning to analyze crop health, detect diseases/pests, and provide data-driven farming insights.
3. Viz.ai – AI for Medical Imaging
Founded: 2016
Funding: $71 million
Viz.ai uses artificial intelligence to analyze medical scans and detect conditions like strokes. It sends notifications to doctors to expedite treatment.
4. Trigo – Computer Vision for Retail Automation
Founded: 2017
Funding: $100 million
Trigo’s AI-powered computer vision technology creates an automated checkout-free shopping experience through camera systems that identify products.
5. Anchorage – Cybersecurity with AI
Founded: 2017
Funding: $80 million
Anchorage fortifies passwordless authentication, fraud detection and identity verification through biometrics and behavioral analytics.
6. DriveNets – AI for Network Optimization
Founded: 2015
Funding: $262 million
DriveNets applies deep learning and artificial intelligence to optimize and automate communication service provider networks.
7. Outsight – 3D Computer Vision Sensors
Founded: 2015
Funding: $80 million
Outsight develops proprietary 3D semantic cameras and perception software for applications from smart cities to industrial automation.
8. AgentVi – AI Video Analytics
Founded: 2008
Funding: $42 million
Agent Vi’s AI powers video analytics like smart surveillance and real-time alerting for enterprises and security agencies.
9. Namogoo – Online Fraud Prevention with AI
Founded: 2014
Funding: $69 million
Namogoo uses behavioral biometrics and machine learning to detect and prevent online fraud including account takeover and abuse.
10. Fireblocks – Securing Crypto with AI
Founded: 2018
Funding: $179 million
Fireblocks offers an enterprise platform to securely transfer, store and issue digital assets, protected by AI-based cybersecurity tools.
Academic AI Research Centers in Israel
Israel’s top universities are at the forefront of AI research and development:
Technion Israel Institute of Technology
The Technion operates the Artificial Intelligence and Data Science Center conducting research in deep learning, NLP, computer vision and multi-agent systems.
Hebrew University of Jerusalem
Hebrew University’s Center for Artificial Intelligence and Data Science – Azrieli College of Engineering Jerusalem has an AI Innovation Lab that collaborates closely with industry partners.
Tel Aviv University
TAU’s Center for Artificial Intelligence and Data Science – Iby and Aladar Fleischman Faculty of Engineering focuses on machine learning techniques relevant to real-world applications.
Bar-Ilan University
Bar-Ilan’s AI and Data Science Center explores explainable AI models, human-computer interaction, Reinforcement Learning and other emerging technologies.
Ben-Gurion University
BGU’s Department of Software and Information Systems Engineering performs leading research in topics like adversarial machine learning, AI security/safety and neural symbolic computation.
Key Takeaways on the AI Scene in Israel
- Israel has established itself as a major international hub for AI innovation and commercialization with over 1,150 active startups.
- The country offers access to world-class AI engineering talent, generous R&D funding, and active encouragement of emerging technologies.
- Israeli AI startups are pioneering innovations across a diverse range of categories like computer vision, NLP, autonomous vehicles, finance, agriculture and cybersecurity.
- Significant VC funding, a thriving startup ecosystem and support from multinational giants enable Israeli AI companies to thrive.
- Ongoing innovation from both startups and academic research institutions will likely keep Israel at the forefront of advancements in artificial intelligence in the coming years.
Key Emerging AI Trends
Israel is at the forefront of some cutting-edge advancements in AI:
- Generative AI – Startups exploring generative models for creation of images, videos, sounds and text content. Examples include Moon Active and Anthropic.
- MLOps – Tools to manage, test, deploy and monitor AI models. Startups like Run:AI, Rafay Systems and Morpheus are active in this space.
- Robotic Process Automation – Automating business and IT processes using AI. Companies like Nemo and Drydock providing RPA solutions.
- Embedded AI – Incorporating AI models into edge devices like smartphones, IoT and sensors. Featured in tech from companies like Hailo, Augury and Anagog.
- AI for Cybersecurity – Startups improving threat detection, investigation and response via AI. Cynet, Axis Security, Hunters are exemplars.
- AI Chips – Specialized hardware like AI/ML accelerators and neuromorphic chips to run AI workloads efficiently. Being developed by Habana Labs, NeuroBlade and Kneron.
Challenges Facing Israeli AI Companies
While the ecosystem is thriving, some challenges exist:
- Tougher competition from AI superpowers like the US and China.
- Scaling AI technologies and providing enterprise-grade solutions.
- Regulation around privacy, bias and responsible AI practices.
- Access to massive datasets required for training advanced AI models.
- Shortage of trained AI talent and professionals. Need for educational initiatives.
Future Outlook
Israel is positioned to remain a dominant force in global AI innovation due to its talented founders, research excellence and access to funding. Commercialization at scale and global expansion will be key priorities going forward. The next major wave of AI unicorns could very likely emerge from Israel.
Conclusion
Israel has firmly established itself as a trailblazer in artificial intelligence research and commercialization. The nation boasts an unparalleled density of over 1,150 highly-innovative AI startups powered by world-class technological talent and research institutes. Companies spanning computer vision, NLP, cybersecurity, autonomous tech and more have raised billions in funding from eager investors who recognize Israel’s leadership in AI. While challenges around talent shortage, regulation and access to data exist, the extraordinary pace of innovation, strong ecosystem support, and emerging trends like generative AI and MLOps position Israel for continued dominance in artificial intelligence technology and applications for the foreseeable future. The mix of entrepreneurial spirit and scientific excellence makes Israel a key hub to watch as a pioneer in shaping the future of AI globally.