Israeli companies keep using Artificial Intelligence for business management & strategy despite challenges

Several Israeli companies are using Artificial Intelligence (AI) to improve their business management and strategy, despite continuous challenges in implementation, a new report from Ynet News indicated.

“More than 50% of companies in Israel report challenges in the actual implementation of AI technologies,” Ynet reported. “According to data provider S&P Global, the rate of companies abandoning their AI pilot projects has jumped to 42%, up from just 17% the previous year.”

Despite this, the Israeli government is actively working to advance the integration of AI into Israeli society.

Ynet noted that in the past year, the Israel Innovation Authority has invested around 7 million shekels in “relocation programs aimed at bringing foreign AI experts into the country,” in order to “accelerate the integration of artificial intelligence systems across Israeli organizations.”

Companies mentioned in the report include Elad Systems, Priority Software, and Scoutt.

Elad Systems offers workshops on how to implement AI in business.

“The integration of our workshops with the implementation processes of their outcomes supports the goal we have defined – to contribute decisively to organizational agility and the ability to realize business value,” Elad's chief digital officer, Uzi Yaari told Ynet.

Priority, a majority stake of which was acquired by Blackstone, has developed an “AI-based system to enhance business management” called aiERP.

Scoutt is a company that matches developers to tech companies using AI.

“When organizations see that the process is fast, transparent and high-quality, the fear of artificial intelligence is replaced by the understanding that it's not a tool meant to replace people, but rather a tool that strengthens the organization through precise matching,” Scoutt Founder and CEO Yair Rozilio stated.

The Israeli government has been promoting AI both in the public and private sectors in recent years

In an April 2025 document outlining Israel’s “National Program for Artificial Intelligence,” the Israel Innovation Authority stated that the country aims to achieve “global AI leadership” and noted that “about a quarter of all high-tech companies in Israel are AI companies.”

Among Israel’s stated goals are “preserving and expanding Israel’s technological sovereignty and qualitative edge,” as well as “implementing [AI] knowledge, capabilities, and tools in national and municipal government.”