Facing talent shortage - Israel launches NIS 5 Million program to bring AI experts home
The program seeks to accelerate the integration of experts and entrepreneurs from abroad into Israel’s tech ecosystem, focusing on two main tracks: identifying experts overseas and encouraging multinational companies to expand their R&D operations in Israel.
The Israel Innovation Authority, the Ministry of Aliyah and Integration, and the National AI Directorate have launched a joint government initiative aimed at addressing one of the most significant challenges facing Israel’s technology industry: a shortage of skilled AI talent. The new program, operating under the Human Capital Fund for the High-Tech Industry, seeks to accelerate the integration of experts and entrepreneurs from abroad into Israel’s tech ecosystem, focusing on two main tracks: identifying experts overseas and encouraging multinational companies to expand their R&D operations in Israel.
The initiative comes amid data pointing to an immediate shortage of approximately 2,400 workers classified as talent and top talent in core AI roles. The largest gaps are in data science and data engineering, which together account for nearly 70% of open positions in the field. Although Israel produces around 1,000 graduates with advanced degrees each year in relevant science and engineering disciplines, only 30% to 40% ultimately join the local industry as specialists. This structural gap cannot be addressed through local training alone and requires an active effort to attract skilled professionals from abroad, allowing Israeli companies to continue developing advanced technological solutions.
The first track focuses on identifying and placing new immigrants, returning residents and individuals eligible under Israel’s Law of Return who have extensive professional backgrounds in AI. The most sought-after professionals include AI researchers, AI engineers, data scientists, data engineers and machine-learning engineers. The government is seeking experts with at least three years of practical experience, as well as holders of advanced degrees with publications at leading scientific conferences.
The top-talent category is intended for particularly senior experts, including researchers with multiple academic publications in recent years, entrepreneurs who have founded startups that reached advanced funding rounds, and senior executives who have led large development teams abroad. Programs established under this track will include recruitment efforts in target markets such as the United States, Canada, Europe, Australia and South America, along with specialized training before relocation and professional and personal support during the first year of employment in Israel.
Alongside efforts focused on individual workers, the second track aims to expand the presence in Israel of multinational companies developing core AI technologies. The goal is to identify leading global companies that have yet to establish local R&D centers and assist them in identifying and screening the professional talent required to launch new operations in Israel.
The initiative is backed by significant financial incentives in the form of government grants for organizations that operate the recruitment and placement programs. Programs with budgets of up to NIS 1 million will be eligible for funding covering 50% to 70% of approved costs, while larger programs will receive grants covering 30% to 50%. In cases of exceptional innovation, the committee may approve grants covering up to 70% of the costs of large-scale programs. Organizations that meet measurable targets may also receive an additional 10% on top of the grant.
In addition to direct grants, the program takes advantage of an opportunity created by new tax reforms for the high-tech sector aimed at new immigrants and returning residents who move to Israel by the end of 2026. The benefits are intended to remove financial barriers and provide greater certainty around taxation and equity compensation for experts considering continuing their careers in Israel.
The government views these experts as a strategic asset essential to the continued growth of Israel’s high-tech industry and is calling on recruitment and placement organizations, nonprofits and company representatives to participate in the initiative.
