The Economy and Industry Ministry announced a new grant program for businesses adopting artificial intelligence and digital technologies. Under the program, with a total budget of 9 million shekels (~$2.5 million), the government will cover 35% of approved investment costs, up to a ceiling of 350,000 shekels (~$96,000) per business.
The program targets businesses in commerce, services, and industry with annual revenues up to 100 million shekels (~$27.5 million). Its goal is to encourage investment in computing, automation, digital systems, and AI tools to boost productivity, improve efficiency, and strengthen business competitiveness.
1+Eligible investments include implementing ERP and CRM systems, inventory management systems, procurement and supply chain platforms, integrating AI tools and advanced technologies, and automation and control systems in production.
The ministry noted that studies by the ministry and the Central Bureau of Statistics show relatively low use of digital tools among Israeli businesses, particularly in commerce, non-tech services, and traditional manufacturing. In hospitality, food, and retail sectors, adoption of advanced business technologies falls below the European Union average.
1+According to the ministry, a survey by the Small and Medium Business Agency on AI usage found that many business owners want to implement AI tools but first need to upgrade their computing systems and digital infrastructure.
Economy and Industry Minister MK Nir Barkat said: “Productivity is the growth engine of the Israeli economy, and the way to increase it is through embedding innovation in every business and every factory.” He said the grant program is designed to help small and mid-sized businesses adopt advanced technologies and remove investment barriers.