Israel to Launch National AI Headquarters Under Prime Minister's Office

The Israeli government approved today (Sunday) the establishment of a National Headquarters for Artificial Intelligence, to be housed within the Prime Minister’s Office. The headquarters will be tasked with leading and implementing a national AI strategy, and will receive an initial budget of NIS 120 million for 2025–2026.

The move, spearheaded by the Prime Minister's Office and the Ministry of Finance, is intended to "maintain Israel’s position at the forefront of global innovation," according to the official decision statement.

The new headquarters will focus on several core areas:

• Recruiting top-tier AI talent

• Building advanced computing infrastructure

• Integrating AI applications across government systems

It will also assess the broader social and economic implications of AI, including its impact on employment, energy consumption, and regulation.

Prime Minister Benjamin Netanyahu is required to appoint a director for the new body within two weeks, and the headquarters is expected to be operational within 45 days thereafter. One of its first tasks will be to draft a comprehensive national AI acceleration plan.

The decision follows, in part, the recommendations of the Nagel Committee, which earlier this year submitted a national roadmap for accelerating AI development in Israel.

While the government accepted some proposals — including a dedicated team of 20 employees (slightly fewer than the 25–30 recommended) — it did not adopt the committee’s flagship proposal: the construction of a national supercomputer with tens of thousands of GPUs, estimated to cost NIS 18 billion.

The size and scope of the planned AI computing infrastructure remain undecided and will be coordinated with the Ministry of Finance, where officials have reportedly expressed reservations about the feasibility and cost of the supercomputer plan.

Administrative Shifts

As part of the move, the National Digital System — currently under the Ministry of Economy — will be transferred to the Prime Minister’s Office, where it will serve as an "executive arm" for AI integration in public services.

However, the establishment of this new body raises questions about the future of Israel’s existing national AI program, which currently operates under the Israel Innovation Authority. The government has yet to clarify whether the existing program will be merged, restructured, or phased out.

Mixed Reactions from Ministers

Despite being approved, the proposal faced opposition from several ministries. Only Finance Minister Bezalel Smotrich supported the decision among affected ministers.

Ministers of Foreign Affairs, Justice, Infrastructure, Education, and Labor expressed reservations, while Minister of Innovation Gila Gamliel and Minister of Economy Nir Barkat formally opposed the plan.

This will be Israel’s third or fourth national initiative to advance artificial intelligence in recent years, following various frameworks and strategies that lacked long-term implementation.

The success of the new headquarters will likely depend on its ability to centralize efforts, mobilize resources, and coordinate among fragmented agencies and ministries — all while keeping up with global competition in the AI race.