Mind the Tech NY
Bank Leumi CEO: "With AI's help, we'll make another revolution in our spending structure"
Speaking at Calcalist and Bank Leumi's Mind the Tech New York conference, Hanan Friedman stated that the resilience of Israeli high-tech, alongside the artificial intelligence revolution, places Israel in a global leadership position, but without rapid adoption of new technologies, the risk is loss of relevance.
Hannan Friedman
(Alex Kolomoisky, Tomerico)
"The innovative and technological advantage of Israeli high-tech, which relies on the amazing entrepreneurs we have, is a necessary condition for leading the industry. But without the recognition of the global ecosystem, it is not enough." This is how Bank Leumi CEO Hanan Friedman opened his remarks at the Mind the Tech New York conference of Calcalist and Bank Leumi.
"We do not take for granted the opportunity to meet here today, at a time that remains complex and challenging for Israel. We are still operating within a challenging geopolitical environment, following a prolonged period of regional tensions.
"But if the past few years have taught us anything, it is that the Israeli economy has a unique ability to continue to operate, adapt and grow – even in exceptional conditions. This resilience is extraordinary. We have seen how businesses, households and institutions in Israel respond with flexibility, innovation and determination. And they continue to thrive, despite the ongoing challenges.
“Over the past five years – despite Covid-19 and the war - the Israeli economy has recorded a cumulative growth of more than 20%, which is about 7% higher than the US and 14% higher than the EU.
"For me, when I think about what we’ve experienced since the first conference I opened here in Manhattan a few years ago, I understand that everything has changed.
"Since that conference in 2021, Israeli tech companies have raised more than 90 billion dollars — an incredible sum by any standard. In addition, a new generation of blue-and-white unicorns has emerged, inspiring immense national pride.
"And even as Israel is healing from the wounds of the war, dozens of entrepreneurs have returned from the battlefield and accelerated the launches of thriving start-ups. Cyber is no longer the sole star of Israeli tech. AI and Defense Tech are becoming more and more dominant.
"All of this is unfolding against the backdrop of the AI revolution, which is the greatest transformation the world has ever seen since the Industrial Revolution.
"A few months ago, I held a series of meetings in Europe with potential investors in our bank. One investor asked me:
“We see that banks around the globe are investing enormous amounts to upgrade their technology and to implement AI tools.
"Unlike Bank Leumi, which presents one of the strongest efficiency ratios globally, most of them still show weak efficiency ratios.
"I believe the answer to his question is obvious to everyone here today. We simply have no option! Israel is an island of excellence when it comes to creating and adopting advanced technologies, especially AI. The Israeli DNA is defined by early adoption of technology, by developing new companies, and by boundless entrepreneurial drive.
"In Leumi’s case, this has resulted in a top-tier efficiency ratio — which led Wells Fargo to place Leumi’s story at the center of their annual banking conference, here in New York two months ago. I believe that banks are uniquely positioned to lead the AI revolution in Israel – given their strong efficiency ratios and the quality of their data. I am very proud that Bank Leumi is among the pioneers of this revolution.
"As I promised at our conference in London last year, we established a new AI Center at Bank Leumi, which reports directly to me. Today, the AI Center has already proven its capabilities and is continuing to develop a range of products that will dramatically transform the customer experience.
"One of our key insights is that AI will free our employees from routine tasks and from dealing with the disappointment of customers who expected real-time solutions for their needs. Our goal is to enable our employees to make an impact in places where machines cannot replace them: to think independently and creatively, to create and connect financial solutions to fundamental human needs; and to initiate new products that will be managed by AI.
"With AI, we will be able to execute a real revolution in our expenses model – to do a lot more with much less resources. To implement many hyper personalized real-time solutions with less resources.
"Leveraging AI already helped us to reduce costs and become even more efficient. In addition, we can also increase profits from new services and products. Products that were not worth offering in the past, can now be personally tailored to customers. The development of these products will take much shorter than in the past, since it will be created by talented employees, who have adapted themselves to the AI era.
"Sitting here today are some of the finest minds in Israel. The slogan that Israeli tech is the growth engine of our economy is not only rhetoric — it is the de facto reality. It affects every aspect of our lives.
"I invite every entrepreneur with a compelling idea to connect with us and explore how we can join forces through the advanced initiatives we are driving at our AI Center, or through The Garage — our early-stage fintech VC.
Watch his full remarks in the video above.
