Artificial Intelligence (AI) is on the rise in the world of technology.
AI is transforming multiple industries with the application in such areas as cyber security, digital solutions, finance, medicine, retail, transportation and media. PwC predicts that AI will add $ 15.7 trillion to world GDP by 2030.
In such circumstances, Israel is turning a few heads in the AI competition. According to a worldwide survey focusing on AI in May 2018, Israel is ranked third in the world following US and China. The number of AI companies per capita is more than 40 times that of the US.
According to LSP Digital, Israel's world-leading high-tech startups have had a significant growth. The high tech industry in Israel has grown 225% in the past 5 years owing a lot of its success to the competitiveness of AI tech in Israel. More specifically, areas such as Machine Learning, Fintech, and Cyber Security has grown at an exponential rate.
Why is Israel growing at such a rate?
Domestically speaking, there has been a generous amount of funding towards these tech areas in Israel. For example, the government established an organization called the “Israel Innovation Authority” whose purpose is nurturing innovative technologies that have the potential for economic impact. (It is currently operated as an independent organization.) In addition to providing a variety of practical tools and financing platforms, it also develops programs for entrepreneurs.
The recent growth can also be due to foreign capital. Israel has the highest percentage of R&D investment per GDP in the world. Many technology leaders from around the world have established AI R&D centers in Israel. The acquisition of Mobileye by Intel is a good example that shows just how much the tech conglomerates of the world pay close attention to the startups from Israel. The success of startups give positive impact on other companies as well as the younger generation to pursue these fields.
A much more competitive AI field.
The Israeli government have taken the proper initiative to gain presence in the global market of today. Right now, they are gradually shifting their interest to Africa. Although there is a huge market in the Red Ocean, the market has barely any room to grow. However, Africa has a much larger potential.You may imagine Africa as somewhat undeveloped, Davos is praised as "the most successful government in promoting the use of ICT". Israel’s bold move to avoid the saturated market, and go where nobody else has gone before, can be taken as a sign that the innovation of Israel has only just begun.