Israel's AI Chief Predicts Foreign Control of Essential Services by 2033
Erez Askal warns that reliance on overseas providers for power, water, and healthcare will compromise national sovereignty unless domestic capabilities expand rapidly.
By Samir Patterson ·
Israel risks ceding control of its essential infrastructure to foreign entities within five to seven years, according to a warning issued on Monday. Erez Askal, the country’s chief AI officer, stated that electricity, water, and healthcare systems are transitioning toward artificial intelligence management. He noted that this shift creates a dependency on overseas providers during periods of geopolitical tension.
Askal made these remarks at a conference hosted by Tel Aviv University. He argued that leading AI companies in the United States and China currently hold a dominant position in the market. To mitigate this risk, he called for accelerated development of local capabilities and the construction of necessary data centers. His strategy involves a dual approach: maintaining cooperation with major international producers while retaining domestic control over critical systems.
The official was appointed to his role by Prime Minister Benjamin Netanyahu on October 12, 2025. Askal, a reserve brigadier general and former commander of intelligence Unit 9900, now works alongside Yossi Karadi, the head of the Israel National Cyber Directorate. The two leaders are tasked with identifying areas for development and assessing how existing national strengths can support a multi-year technological campaign.
The government approved a comprehensive package of AI policies in June. These measures are expected to impact employment and education sectors. Previous reporting indicated that while Israel maintains a strong position in cybersecurity, it lags behind in the wider field of artificial intelligence. The new bureau aims to close this gap by focusing on practical applications in physical systems.
Askal initially received a budget of NIS 120 million, primarily allocated for 2026, along with 20 positions to build the directorate. Annual allocations of NIS 13 million for salaries and operating expenses are scheduled to begin in 2027. Spending may be adjusted based on operational needs. The bureau’s mandate includes encouraging domestic solutions and supporting regulation that preserves innovation.
The organization has identified specific advantages in combining cybersecurity with AI. Potential applications include drone operations, emergency room surgery, and classroom instruction. At a conference in June, Askal highlighted the growth potential of applying AI to aircraft and drip irrigation systems. These physical applications represent a distinct area of national focus.
Analysts attribute Israel’s slower progress in AI to limited space for data centers and the high energy requirements of such facilities. Unlike the cybersecurity sector, where private businesses often led innovation, major AI projects require substantial public investment. The bureau is currently coordinating private companies around defined national priorities to address these structural challenges.
