Israel - National AI Program (173/2023)

Overview

Government Decision No. 173, adopted on 24 February 2023, approves Israel's National Program for Artificial Intelligence to strengthen the country's technological leadership and to accelerate adoption of AI in research, industry and the civilian public sector. The Decision builds on earlier government measures (notably Decision No. 212 of August 2021) and sets a multi‑year authorization to commit of up to NIS 500 million for 2023–2026 to support infrastructure, research and public‑sector pilots. For an official public audit and program review see the State Comptroller’s special report on national AI preparedness. ([library.mevaker.gov.il](https://library.mevaker.gov.il/sites/DigitalLibrary/Pages/Reports/7944-7.aspx))

Definitions

For purposes of Decision 173 and associated implementing materials the following working definitions are used: "National Program for Artificial Intelligence" — the coordinated set of investments, infrastructure projects, research initiatives and public‑sector pilot programs approved under Government decisions 212 and 173; "TELEM Forum" (Telam / national research infrastructures) — a multi‑agency forum responsible for national science infrastructures and contributor to the program design; "authorization to commit" — Ministry of Finance approval to permit commitments against future budget appropriations up to a stated ceiling; "knowledge and coordination centre" — the government entity to be established by the Ministry of Innovation to coordinate policy, ethics, data and regulation. (These definitions appear in program documentation and public summaries prepared by the implementing ministries.) ([techpolicy.org.il](https://techpolicy.org.il/blog/israeli-court-ruling-border-controllers/))

Governance and Institutional Framework

Decision 173 assigns lead responsibility to the Ministry of Innovation, Science and Technology (MIST) together with the Innovation Authority and requires coordination with the Ministry of Finance and other line ministries. It instructs establishment of a central government "knowledge and coordination centre" for AI to serve as the primary locus for: policy and regulatory advice; data and information policy; ethics and international civilian cooperation; and public‑sector adoption guidance. Implementation is expected to involve TELEM forum members, participating research institutions, the national digital/IT units in ministries and inter‑ministerial teams created for sectoral pilots. Oversight and ex post audit authority remain with statutory watchdogs such as the State Comptroller, which has assessed progress and gaps in implementation. For ministry briefings and public materials on the institutional set‑up see the Ministry/Innovation Authority pages and government decision summaries. ([innovationisrael.org.il](https://innovationisrael.org.il/ai-in-healthcare/))

Key Focus Areas

The Decision prioritizes three interlocking focus areas: 1) Research acceleration — grants, academic‑industry cooperation, talent development; 2) Shared national assets and infrastructure — development of large compute resources (supercomputing), curated datasets (Hebrew/Arabic corpora), tooling for model development and testing, and R&D labs for explainability, privacy preservation and federated learning; and 3) Public‑sector adoption — pilots to embed AI in administrative processes and public services through the national digital apparatus. Specific program elements reported publicly include support for datasets, competitive calls for software and supercomputing tools, establishment of labs for privacy and explainability research, and sectoral inter‑ministerial teams (including a team for financial‑sector AI use). International alignment and cooperation are emphasized but the Decision favors a pragmatic, risk‑based, sectoral regulatory approach rather than immediate horizontal AI legislation. ([en.hayadan.org.il](https://en.hayadan.org.il/%D7%91%D7%99%D7%A0%D7%94-%D7%9E%D7%9C%D7%90%D7%9B%D7%95%D7%AA%D7%99%D7%AA-%D7%9E%D7%93%D7%99%D7%A0%D7%99%D7%95%D7%AA-%D7%9E%D7%9E%D7%A9%D7%9C%D7%AA%D7%99%D7%AA-%D7%91%D7%99%D7%A9%D7%A8%D7%90%D7%9C))

Implementation Framework

Operational steps mandated or anticipated under Decision 173 include: issuance of calls for proposals and R&D funding channels by the Innovation Authority; TELEM forum members presenting outline budgets and implementing project pipelines; the Ministry of Finance making the commitment authorization available (up to NIS 500 million) for disbursement across 2023–2026; establishment of the knowledge/coordination centre within MIST; and ministerial cooperation for public‑sector pilots which are to be coordinated with digital governance units. The Decision contemplates multi‑annual planning, with deliverables framed as infrastructure buildouts, dataset deliveries, lab establishments and pilot rollouts. Implementation tasks have been tracked in ministerial updates and external audits. ([innovationisrael.org.il](https://innovationisrael.org.il/ai-in-healthcare/))

Monitoring and Evaluation

Decision 173 did not create a statutory regulator but requires periodic reporting and coordination among ministries. The State Comptroller’s 2024 special audit examined national AI preparedness and tracked implementation against Decision 173, identifying both investments approved and deficits in centralised governance and execution monitoring. Monitoring mechanisms referenced in implementation materials include program dashboards, TELEM reporting, and periodic ministerial updates to the Budget Directorate and Cabinet. The Decision envisages ongoing evaluation of technology, ethics and data policy needs and potential legislative gaps. ([library.mevaker.gov.il](https://library.mevaker.gov.il/sites/DigitalLibrary/Pages/Reports/7944-7.aspx))

Penalties, Liability, and Appeals

As a government strategy decision rather than regulatory legislation, Decision 173 does not itself prescribe specific enforcement penalties or administrative sanctions for private entities; instead it allocates public funding and sets programmatic obligations for implementing bodies. Legal liability for AI deployments remains governed by existing Israeli law (civil liability, administrative law, sectoral regulation and privacy statutes). The Decision invites implementing ministries and regulators to identify sectoral legal or regulatory needs, and the State Comptroller audit highlights areas where accountability mechanisms and clearer assignment of responsibilities remain necessary. Stakeholders seeking review of administrative choices retain remedies under administrative law. ([library.mevaker.gov.il](https://library.mevaker.gov.il/sites/DigitalLibrary/Pages/Reports/7944-7.aspx))

Relationship to Other Instruments

Decision 173 explicitly continues and complements Decision 212 (Aug 2021) and the TELEM forum recommendations (2020); it is designed to fund and operationalize parts of the national AI program produced by the Ministry of Innovation in 2022–2023. It is not a substitute for sectoral laws (health, finance, data protection) and explicitly contemplates coordination with existing regulators and sectoral policy instruments. Public policy documents released following the Decision (policy & ethics guidance issued by MIST and the Ministry of Justice) reference Decision 173 as the implementation authority for central initiatives. The State Comptroller and parliamentary oversight channels evaluate synergies and implementation gaps across these instruments. ([library.mevaker.gov.il](https://library.mevaker.gov.il/sites/DigitalLibrary/Pages/Reports/7944-7.aspx))

International Alignment

Decision 173’s policy approach emphasizes alignment with international principles (including OECD AI recommendations and EU/other global frameworks) while prioritizing national infrastructure and innovation. Public commentary by implementing ministries signals a preference for a risk‑based, sectoral approach that coordinates with international norms on safety, transparency and data protection; the government’s policy documents also reference the EU AI Act debates and NIST/OECD frameworks as comparative reference points. The Decision envisages international civilian cooperation channels supported by the knowledge/coordination centre. ([techpolicy.org.il](https://techpolicy.org.il/blog/israeli-court-ruling-border-controllers/))

Implementation Timeline

Sources and References