Israel’s Flexible AI Policy: Innovation, Ethics, and Emerging Challenges

Summary:

Israël encourage l’innovation responsable en intelligence artificielle (IA) à travers des politiques et des lignes directrices sectorielles. Actuellement, aucune loi spécifique ne régule directement l’IA. Le ministère de l’Innovation, de la Science et de la Technologie a publié des documents sur les réglementations et l’éthique de l’IA, promouvant une approche basée sur des principes souples pour le secteur privé. Des efforts sont également en cours pour établir un cadre de régulation adapté, tout en permettant la participation du secteur public.

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Israel promotes responsible AI innovation through policy and sector-specific guidelines to address core issues and ethical principles.

Currently, there are no specific codified laws, statutory rules or regulations in Israel that directly regulate AI.

AI Policy: Israel’s Ministry of Innovation, Science and Technology (MIST), in collaboration with the Ministry of Justice (MOJ), published: (i) a White Paper on AI in 20221; and (ii) following public consultations, its first policy on “Artificial Intelligence Regulations and Ethics” in 2023 (the “AI Policy”).

The AI Policy encourages “responsible AI innovation in the private sector” through a principled-based, sector-specific regulatory approach using ‘soft’ tools, such as non-binding ethical principles and voluntary standards. While sector-specific regulation is intended to promote flexibility and is the favored approach, the AI Policy also allows for the potential adoption of horizontal legislation if common challenges across sectors arise.

According to the AI Policy, the Israeli government’s policy on public sector applications of AI is being developed separately.

**Other AI-related Developments:** The AI Policy forms part of a wider effort by the Israeli government to address the benefits and risks of AI, which include:

– Government Decision No. 212 of 1 August 2021 (“Decision 212”) – A decision on the reinforcement of technological leadership in Israel which tasked MIST with: (i) advancing a national AI plan for Israel; and (ii) implementing the first phase of the “TELEM Outline,” an initiative to develop research, human capital, infrastructure and tools in the field of AI.
– A publication by the MOJ on IP challenges in the context of large-scale AI models.
– A proposed national-level forum for public participation on AI policy in Israel, comprised of regulators and experts in technology, policy and law, to promote coordination and coherence in sectoral AI regulation.
– A proposed AI Policy Coordination Centre within MIST and in collaboration with the MOJ to organize and coordinate on regulatory issues relating to artificial intelligence.
– MIST’s active participation in various multinational forums to develop AI regulation and standards.
– An interim report on AI regulation in the financial sector.
– In April 2025, MIST published an overview of Israel’s National AI Program, outlining strategic priorities.
– In May 2025, the Israeli Privacy Protection Authority published draft guidelines on applying the Privacy Protection Law to AI systems.

On September 5, 2024, the Council of Europe’s Framework Convention on AI was signed by Israel, among other countries. The treaty will enter into force following ratification by signatories.

As noted, there are currently no other specific laws or regulations in Israel that directly regulate AI.

The AI Policy directs its guidelines and recommendations to sector-specific regulators in areas such as health, education, finance, and more.

Currently, there is no AI-specific regulator in Israel. The MIST is the executive agency for national AI-related strategies and appears to work in close collaboration with the MOJ. The AI Policy encourages the applicable sector-specific regulator(s) to assess the need for any regulation for the development and use of AI.

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