"AI gives Israeli chutzpah superpowers"
Shiran Faran, Director of Product Solutions & Partners at Google Israel, was speaking during a panel on leadership in the AI era held as part of Google and Calcalist's AI Week. Adam Fisher, a partner at Bessemer, argued that Israelis' advantage lies in their tendency to "act and keep moving forward" even in times of crisis, while Omer Kaplan, co-founder and CEO of ZyG and co-founder of ironSource, said the most successful companies in the AI era are those that deliver customers "an outcome, not just software."
"AI gives Israeli chutzpah superpowers," said Shiran Faran, Director of Product Solutions & Partners at Google Israel, during a panel on leadership in the AI era held as part of Calcalist and Google's AI Week. Joining Faran on the panel, moderated by Calcalist's Elihay Vidal, were Adam Fisher, a partner at Bessemer, and Omer Kaplan, co-founder and CEO of ZyG and co-founder of ironSource. The three discussed Israel's place in the AI revolution, the comparative advantages of the local tech industry, and how Israeli entrepreneurs can capitalize on the dramatic changes brought about by artificial intelligence.
Are we missing the AI train, or are we already on board?
Adam Fisher: "Absolutely not. I know there's a perception that only two or three companies, like OpenAI and Anthropic, matter in the AI world, but there is tremendous innovation and entrepreneurship happening in Israel. Some of the most successful AI companies were founded before the current AI boom, and what I see today is extremely encouraging in terms of AI entrepreneurship."
Omer Kaplan: "I agree. It's true that we haven't yet seen Israeli companies reach the trillion-dollar or hundreds-of-billions-of-dollars scale of the foundational model companies. But in the worlds of agentic services and AI applications, we're seeing a huge wave of companies emerging here, such as Wonderful and ZyG, that are tackling major problems through AI. That's a trend that fits perfectly with the Israeli DNA and can lead to the creation of very strong companies."
Shiran, does Google's continued investment in Israel say something about how the company views the local market?
Shiran Faran: "Absolutely. We need to understand Israel's strengths and comparative advantages. We're not a country with unlimited resources to invest in massive infrastructure projects or spend enormous sums building foundational AI companies. Israelis have always excelled at applications and delivering real value to customers through products. We've seen that in fintech and cybersecurity, where Israel is a global leader. Israelis aren't afraid of AI. We see it as a colleague."
The traits often associated with the Israeli tech industry - creativity, chutzpah, and resilience - are they an advantage or a disadvantage in a world where machines increasingly outperform humans?
Fisher: "To me, they're a tremendous advantage. Every economy in the world would love to have the level of agency that Israelis possess. Most countries envy us for it. It's important to remember that much of the AI infrastructure was built here. A company like NVIDIA would not be what it is today without Israel, and the fact that its operations continued throughout the war says something about the resilience of both Israel and its tech industry. There are many other developments underway that make me very optimistic."
Kaplan: "Absolutely. The most interesting AI companies today, other than those building the models themselves, are companies that tell customers, 'We're not selling you software; we're delivering outcomes.' To do that, you need chutzpah, boldness, innovation, and the belief that what isn't AI today will become AI tomorrow. In the meantime, you solve problems with a combination of AI and people, while steadily moving toward automation. At its core, it's about getting things done, and Israelis are exceptionally good at that."
Fisher added: "We used to call these services businesses, and technology played only a supporting role. What AI does is make services scalable and profitable. That combination is a perfect fit for Israel. We didn't build many companies like this in the past because they required too much manpower. AI-powered services change that."
Faran added: "AI gives Israeli chutzpah superpowers because we're living in an era of unprecedented uncertainty. Starting a company today is a bit like rearranging deck chairs on the Titanic, you know you're moving things around, but you don't know what challenge is coming next. The agility and resilience that Israelis develop from growing up in this environment are critical advantages. I meet entrepreneurs who tell me about an idea, and six months later they've already pivoted twice. The ability to move quickly, operate lean organizations, and allow innovation to emerge from the bottom up, these are characteristics that are unique to our market and precisely the strengths that AI rewards."
Does the state have a responsibility to help establish this leadership position?
Fisher: "Absolutely. It reminds me of the telecommunications revolution 25 years ago, when Israel was relatively late to adopt the technology despite producing much of the underlying innovation. Israel is famous for building chips and infrastructure, but for years the local market lagged behind. That's less true today, but the government still isn't investing enough in data centers or in teaching AI skills in schools and universities. In those areas, we're falling behind."
Kaplan: "It's difficult to answer that without touching on politics. Ideally, the government should absolutely be involved. It's critical that Israel remain a leader in this field. But right now, the country is dealing with many other urgent challenges. I hope that soon we'll be in a position to invest more heavily in these long-term priorities as well."
Shiran, do multinational companies like Google share some of that responsibility?
Faran: "The government has a crucial role, particularly in regulation and creating a fertile environment for startups. Google's responsibility is significant in two areas. First, helping develop talent. We invest heavily in collaborations with government agencies and academia, and in initiatives that promote diversity and inclusion. Second, supporting the broader startup ecosystem. Through our campus and various programs, we provide startups with access to Google's technologies, expertise, and resources. We certainly feel a responsibility, but the government also has a critical role to play."
What advice would you give local entrepreneurs who want to become leaders in the AI era?
Fisher: "If you're a software developer or building applications, start thinking in terms of services and outcomes. Ask yourself what AI makes possible today that wasn't possible, or profitable, before. That shift changes not only what you build, but also how you build it and who you build it with. Once that realization clicks, it's difficult to go back to the old software mindset."
Kaplan: "Try to solve a huge problem. Two or three years ago, many startups took AI and applied it to relatively narrow problems, only to see the models themselves evolve and absorb those capabilities. Today, you should focus on the biggest problem you can imagine and deliver an end-to-end solution, including the service layer. That's where the most meaningful bottlenecks remain, and where companies can still create lasting value despite rapid technological change."
Faran: "We've talked a lot about the incredible pace of AI innovation, and one of the biggest conclusions we're seeing is that execution is becoming commoditized. The difference between successful companies and unsuccessful ones isn't who uses the most AI; it's who knows exactly what they want to achieve with AI. The Israeli DNA, resilience, agility, and chutzpah, is a playbook for this new world. We can leverage our strengths, move faster, adapt more quickly, and build flatter organizations where innovation comes from the bottom up."
