The algorithm vs. the bureaucrat: Israeli startups turn red tape into opportunity

From insurance claims and pension tracking to travel planning, onboarding and healthcare, Israel’s high-tech sector is building AI-driven tools to replace outdated systems, slash costs and ease bottlenecks—offering a blueprint for governments worldwide

Say goodbye to endless queues and convoluted paperwork. The Israeli high-tech sector is forging the tools to make bureaucratic inefficiency a relic of the past.
To understand the problem, consider Jim Anzalone, a manager at a commercial consulting firm. He submitted 24 applications for export licenses to China in a single week, only to receive four rejections. These denials are a symptom of a much graver condition afflicting the Bureau of Industry and Security (BIS). Grappling with internal dysfunction, the agency has become paralyzed, creating an unprecedented bottleneck that directly undermines the competitive edge of American companies.
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הבינה המלאכותית ושוק העבודה
הבינה המלאכותית ושוק העבודה
(Illustration: VesnaArt, Shutterstock)
This scenario perfectly illustrates how antiquated systems and regulatory inefficiency can stall business operations. However, behind the scenes, a quiet yet profound change is taking shape, with Israel at its epicenter. This dynamic, where outdated systems create bottlenecks that stifle growth, is all too familiar in Israel. But here, the nation's high-tech ecosystem is stepping in to develop technological solutions that create seamless workflows and, in doing so, are fundamentally changing the rules of the game.

A wave of innovation in finance and insurance

The insurtech sector in Israel has become a vibrant hub of innovation. A prime example is Click-Ins, a company that simplifies the tedious process of filing automotive claims. Using a smartphone camera, customers can document damage, submit their claim online and receive approvals with remarkable speed.
Dr. Yael Benvenisti, deputy CEO of Insurtech Israel, explains the leap: "The use of technologies like AI and machine learning allows insurance companies to review claims automatically, identify potential fraud and approve payments with speed and efficiency. Not long ago, this would have required days of manual human intervention."
Another innovator is Toonimo, which developed a platform to guide users through complex insurance websites. It adds a personalized, interactive layer directly onto the site, making the user journey fluid and frictionless.
Dr. Yael Benvenisti Dr. Yael Benvenisti Photo: Rami Zarnegar
In personal finance, traditionally reliant on advisors and complex jargon, a similar revolution is underway. Gal Tamir, marketing manager at Finq, describes their solution: "The company uses an AI-based algorithm to perform a personal analysis of pension data, so anyone can understand their retirement savings status without a human advisor. The system ranks all pension and provident funds in Israel based on performance, fees and dozens of other parameters, then offers personalized tracks with continuous monitoring and active adjustments."

Redefining user experience in travel and onboarding

This trend extends far beyond finance. Digital tourism, long associated with rigid search processes, is being transformed. Gotcha, in partnership with Ophir Tours, has introduced an AI-powered search bar that allows users to enter requests in natural language, like "a romantic trip to Greece in October with a hotel on the beach." The system interprets the user's intent and returns perfectly tailored results.
Neta Gafni, CMO of Ophir Tours, notes the broader implications: "Beyond user convenience, there is a national strategic advantage here. Until now, tourism planning has relied on general forecasts. Today, real-time search data allows bodies like the Tourism Ministry and municipalities to react quickly, allocate budgets intelligently and build precise infrastructure in response to emerging demand."
Ophir Tours CMO Neta Gafni Ophir Tours CMO Neta Gafni Photo: Dan Peretz
EasyDo CEO Aviram Cohen EasyDo CEO Aviram Cohen Photo: PR
Perhaps the most impacted area is customer and employee onboarding—a critical junction for satisfaction and retention. Aviram Cohen, CEO of EasyDo, elaborates: "Today, these processes still suffer from a reliance on paperwork and disconnected systems, resulting in high churn and inflated operational costs. This is exactly where the Israeli tech ecosystem comes in." He continues, "Israeli companies are developing innovative platforms that optimize the entire onboarding journey with secure digital signatures, automated document collection and seamless identification processes. This translates into a dramatic improvement in conversions and customer trust."

A national blueprint for healthcare efficiency

This revolution is not just for the private sector. Widespread adoption by government bodies could break regulatory logjams and dramatically improve citizen services. The healthcare system is a key example.
Gal Vaxman, CAIO at Elad Systems, says, "Many healthcare processes are still manual, creating a bureaucratic burden. Elad Systems offers AI-based solutions to tackle these bottlenecks." He provides several examples: instead of doctors typing summaries, patient conversations are automatically transcribed, with the system generating summaries and tasks. Appointment scheduling has become smart, asking only relevant questions. The infamous "Form 17" referral is pulled automatically.
Elad Systems CAIO Gal Vaxman Elad Systems CAIO Gal Vaxman Photo: Roy Shor
The preparation for general anesthesia has also been revolutionized. Anesthesiologists can now collect all necessary patient data with a single click, instead of manually compiling it. "This allows a doctor to prepare four times as many patients for surgery in a single day," Vaxman says. "Even the cumbersome hospital discharge process, which often meant hours of waiting, now produces a form at the push of a button, helping the state free up beds faster."
The message is unequivocal: where there is red tape, there is an opportunity for Israeli innovation. What began in the private sector must become a national model. The government's adoption of these tools is the key to breaking the gridlock, propelling the economy and making Israel a truly efficient nation—not just in presentations to investors, but in the daily life of every citizen.
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