Trump's policy creates a window of opportunity for Israel in AI

The global leadership of the United States in Artificial Intelligence Is unlikely to diminish in the near term. However, several actions led by the Trump administration are undermining some of its foundations. For years, the U.S. has attracted researchers and experts from around the world thanks to academic excellence, advanced infrastructure, generous research grants, a friendly visa policy for top talent, and extensive public and private investments. Now, due to massive cuts to university budgets, a tightening of visa policies for students and researchers, growing tension between the academia and the government, reduced research budgets in governmental agencies, and mass layoffs under the DOGE program (even in organizations employing AI researchers) — a climate of uncertainty is emerging, with global implications.

The situation in the U.S. creates opportunities for other countries seeking to strengthen their position in the global AI race, and Europe has already recognized this. Several European universities have launched new research programs and begun recruitment efforts, explicitly or implicitly targeting American researchers concerned about budget freezes and the deteriorating relationship between academia and the government. Additionally, the European Commission is significantly increasing budgets for programs such as the ERC, aimed at attracting scientists to Europe. In contrast, Israel shows no effort to seize this opportunity for its own benefit.

Danny Biran.

Israeli High-Tech has been struggling with significant challenges for some time, partly due to local instability, while the global AI train continues to accelerate. There is debate about whether Israel can maintain its high-tech competitiveness in the AI era or whether it is at risk in light of the attention, national strategies, and investments other countries are dedicating to this technology. However, one point is undisputed: developing high-quality human capital in AI is critical to Israel's global competitiveness.

High-quality human capital has always been Israel's relative advantage in innovation. Even though Israel’s rankings in global AI indices have dropped — mainly due to low scores in government strategy, regulation, and infrastructure — we still maintain good positions in terms of human capital and AI research. Yet, these are not guaranteed to last.

One of the most pressing issues that should concern decision makers and the local ecosystem Is brain drain. A recent "AI Index" report by Stanford University revealed that Israel has the highest negative migration rate of AI talent. This is a red flag requiring immediate action to preserve and expand the country's human capital.

Obviously, Israel may not be the preferred destination for most AI experts after the U.S. The political and security situation, strict immigration policies, and a lack of sufficient academic resources to attract researchers do not help the country's appeal. Nevertheless, precisely against this backdrop, and given the shifting policies and atmosphere in the U.S., a proactive and concentrated effort is required: refreshing visa programs for experts, building partnerships between academia, government, and industry, and launching a focused outreach campaign — primarily targeting those eligible under the Law of Return — highlighting Israel’s advantages in this field.

This is a necessary national effort for securing Israel's future as a technological powerhouse. In the new AI era, where competition between countries is only intensifying, Israel must leverage its relative advantage — its human capital. The ability to attract, develop, and retain AI talent will determine whether Israel remains at the forefront of innovation or becomes a marginal player on the global stage. Notwithstanding the importance of relations with the U.S. administration, Israel must not miss the opportunity that is currently emerging.

Danny Biran is a Senior policy fellow at RISE Israel.