A new report by Dell Technologies, based on a survey of roughly 2,850 IT decision-makers worldwide—including respondents from Israel—may appear to point out shortcomings in the country’s artificial intelligence (AI) readiness. At least one investor, though, remains bullish on the Jewish state and interprets the findings as encouraging.
“This report is good for Israel and a good sign to be bullish on Israel,” said Michael Fertik, managing director and founder of Heroic Ventures and executive chairman and founder of Reputation.com. Fertik, who recently launched his first Israeli subsidiary, Modelcode Chai, views the data as an opportunity rather than a setback.
The Dell survey indicates that Israeli companies feel less prepared for AI than their global peers. Fertik contends this perception is actually an advantage.
“This translates to Israel being more aware of the need to get ready for the AI workload,” he explained. “[It shows] the country’s understanding of the gap between where they are now and where they need to be—more than the average company around the world.”
From his perspective, Israel’s candid self-assessment offers a competitive edge.
“Israel is probably more self-aware and more aware of the urgency to move on AI than the average European, Asian or even American company,” he said.
Survey findings revealed that every Israeli respondent—100%—said employees need training on AI systems. Nearly three-quarters (72%) reported lacking the knowledge or protocols to implement AI safely, compared to 63% globally.
Cybersecurity ranked high among concerns. Around 73% of Israeli IT leaders said they worry about the risks of AI tools, particularly those using cloud or third-party services. Globally, 64% shared this concern. In addition, 76% of Israeli managers expressed doubts about their ability to protect data and secure smart endpoints—well above the global average of 59%.
“Israel must conduct a delicate balance between rapid innovation and the preservation of national security,” said Lior Pony, managing director of Dell Technologies Israel. He told The Media Line that Israel’s AI future depends on coordinated action.
Pony outlined steps such as adopting risk-based regulation similar to the European AI Act, strengthening infrastructure and developing AI-specific cybersecurity tools, prioritizing local data protections, investing in talent early, and fostering national and international partnerships to share knowledge and bolster resilience.
“This integration will allow Israel to continue leading technologically without compromising its security,” he said.
Talent shortages also emerged as a hurdle. More than half of Israeli respondents (52%) said creativity is essential to AI advancement, slightly above the global average of 48%. Half cited critical thinking and problem-solving as necessary, compared to 47% worldwide. Yet only 44% of Israeli organizations prioritized data science and machine learning skills, versus 47% globally.
Fertik attributed part of the shortfall to the war.
“Israel has what should be a short-term manpower problem,” he said, “because a lot of its ‘most useful’ people are fighting.” He added, “God-willing, the war will end soon.”
He predicted that the global AI transformation will favor smaller, adaptable countries such as Israel, Taiwan, and Singapore. Infrastructure, though, remains a sticking point.
According to Dell, 64% of Israeli organizations are not yet ready to handle AI workloads, compared to 46% globally. While companies abroad are already investing in preparation—38% in AI-optimized storage and 39% in dedicated servers—fewer than 25% of Israeli firms are making similar investments.
The gap is even wider in critical support infrastructure. Only 11% of Israeli respondents said they are investing in systems such as cooling, energy management, or load balancing between cloud and edge computing, compared to 28% globally.
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Perhaps most striking, 78% of Israeli executives said they do not know what AI will look like in three to five years—27 points higher than the global average. Many cite rigid company structures, limited budgets, and short-term planning as obstacles.
“Do you really think that Israeli respondents are dumber than the average global respondent?” Fertik asked with a laugh. “The answer is no. It’s just that they’re more fluent with the problems of tech.”
Dell characterized the overall picture as “complex and contrasting.”
“We are witnessing a gap that is primarily caused by a culture of rapid innovation versus a lack of adequate infrastructure,” Pony said.
While many Israeli executives view AI as a strategic priority, he explained, turning that vision into reality requires proper systems and skilled personnel—areas where Israel still lags.
“The technological vision exists,” Pony added, “but it must be supported by an organizational foundation that enables its safe and effective execution.”
- The article is written by Maayan Hoffman and distributed with permission by The Media Line