- January 1, 2026
- Posted by: guyadmin
- Category: IoT & Smart Cities
The Quiet Revolution: How Artificial Intelligence is Changing the Face of Public Service in Israel
What happens when the smartest technology meets one of the biggest challenges in the Israeli economy? The Israel Innovation Authority published a fascinating report in November on the impact of artificial intelligence on productivity in the economy. The data is clear: AI multiplies work productivity and accelerates processes in the high-tech and service sectors at a dizzying pace.
Many organizations in Israel are sitting on a volcano of information – years of customer interactions, service patterns, and rich operational data. But most of this data simply sits on servers without generating real value. According to the report, organizations that hold quality data but don’t leverage it for their customers are simply leaving enormous value on the table.
The report is a must-read specifically for public sector bodies. Take water and sewage corporations as an example: they are under constant budgetary pressure to do more with fewer resources – better service, higher quality, stricter regulation, but in a closed economy with regulated pricing. AI is the key to efficiency. True, it sometimes sounds like a fictional vision, but reality is different – the technology is developing at record speed and in fields like healthcare it’s already taking shape.
Imagine a service center that identifies the customer’s problem before they finish explaining it, a chatbot that offers an accurate solution within seconds, or a system that predicts infrastructure failures before they occur. This isn’t a distant future – it’s already happening. The ROI includes improved service, shortened processes, internal optimization, and not just immediate cost savings.
The gap between organizations already harnessing AI’s power and those hesitating is widening. The question is no longer “whether to invest” but “how to invest in the smartest way”. The revolution is already here – the only question is whether you’re in?
Want to read the full report? Click here to continue reading