Generative AI - Israel

The Generative AI market in Israel is rapidly growing due to the high adoption of digital technologies, growing awareness of the benefits of AI in healthcare, and the convenience of online services. This intense growth is fueled by advancements in AI technology and increased investment in the sector by both public and private entities.

Customer preferences: As the use of Generative AI continues to expand in Israel, there is a growing demand for personalized solutions that cater to the diverse cultural and lifestyle preferences of consumers. This has led to the development of AI-powered tools that can generate culturally relevant content, such as personalized news articles and social media posts. Additionally, the rise of virtual assistants and chatbots that can understand and interact in multiple languages is indicative of the country's diverse demographic and evolving linguistic landscape.

Trends in the market: In Israel, the Generative AI market is experiencing a surge in demand for AI-powered chatbots and virtual assistants across various industries. This trend is driven by the need for enhanced customer engagement and personalized services. Furthermore, there is a growing focus on developing AI solutions for cybersecurity, with Israeli startups leading the way in this field. These trends are expected to continue, as the Israeli government is investing heavily in AI research and development, making it a prime location for industry stakeholders to invest and collaborate.

Local special circumstances: In Israel, the Generative AI market is witnessing significant growth, driven by the country's strong tech ecosystem and government support for innovation. The country's small size and highly educated workforce make it a prime location for AI development. Additionally, Israel's cultural emphasis on problem-solving and risk-taking has led to a proliferation of startups in the AI sector. The country's strict data privacy regulations and high adoption of technology in various industries also contribute to the growth of the Generative AI market in Israel.

Underlying macroeconomic factors: The Generative AI Market in Israel is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in research and development. Israel has a strong startup culture and a highly educated workforce, making it a hub for innovation and technological advancements. The government also provides significant support for the development of AI technologies through various initiatives and funding opportunities. Additionally, Israel's strong economic growth and stable fiscal policies create a favorable business environment for companies operating in the Generative AI Market. This, combined with the country's strong focus on research and development, makes Israel a key player in the global Generative AI Market.

Data coverage: The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the funding values from different industries for the market.

Modeling approach / Market size:Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports, funding data, and third-party data. In addition, we use relevant key market indicators and data from country-specific associations such as GDP, number of internet users, number of secure internet servers, and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are the level of digitalization, the number of secure internet servers, and the revenue of the Public Cloud market.

Additional Notes: The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russian-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the market is updated on an ad-hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is weighted for representativeness.