Abigail Darwish | 9 August 2024

Summary

• Since October 7, greater investment into Israel’s tech sector has seen an increase in the use of AI for national defence. 

• Israel’s Ministry of Defence has collaborated with a number of Israeli-based startups, such as Smart-Shooter, Xtend, and Robotican, to fortify its national security capabilities. 

• With the likely continuation of the Israel-Hamas War for the foreseeable future, and the risk of greater escalation in the region, AI technology will continue to be central to Israel’s defensive capabilities.

The development of artificial intelligence (AI) is traditionally regarded as a scientific or economic milestone. However, for countries in a state of war, the development of AI prioritises other concerns, namely national security. Indeed, where AI signals scientific and economic feats, in countries such as Israel, AI also hallmarks national security milestones. 

Following the unprecedented breach of Israel’s border by Hamas militants on October 7, with rudimentary equipment including paragliders, bulldozers and explosives, a new wave of innovation in Israel’s tech sector has been initiated. In 2023, despite both a worldwide decline in funding in the tech sector, and a decline in investor confidence in Israel as a result of domestic political instability over the Israeli government’s proposed judicial overhaul, since the beginning of the War, increased investment in Israeli startups has seen the development of new AI technology for the country’s national defence. In April to June alone this year, Israeli tech startups have attracted USD2.9 billion in capital from investors, marking almost a 50% increase from the USD1.96 billion raised in the same quarter last year. The rejuvenation of the tech sector during a time of war has seen many start-ups design and manufacture AI-based equipment to support Israel’s war effort, and more generally its national security. 

Amongst the startups Israel’s Ministry of Defence has collaborated with since the onset of the War, AI has been at the epicentre of this proliferation of national security capabilities. In particular tactical AI:

Smart-Shooter (Kibbutz Yagur, Israel)

One notable development by Smart-Shooter has been its ‘SMASH Dragon’ which uses real-time fire control algorithms to direct the device to time and accurately hit either ground or aerial targets such as UAVs. Its system can also lock, track, and target unknown objects in unfamiliar environments, whether static or dynamic, or day and night. 

Xtend (Tel Aviv, Israel)

Xtend is an assault and surveillance manufacturer start-up which uses a control interface (using a one-handed joystick and virtual reality glasses) to transmit the live view of the drone to its operator. Xtend also enables operators to select a particular area on the map which the drone is to be dispatched, and independently flies to. 

Robotican (Omer, Israel)

Robotican’s development of ‘smart, autonomous robotic solutions’ has seen the development of products such as GoShawk, an autonomous drone that is designed to both capture and retrieve hostile drones, rather than intercepting them. The drones also use surgical mitigation in order to avoid collateral damage in urban environments.

Forecast

• Short-term

  • It is very likely that tech investment on AI-technologies for Israel’s national security will continue for the duration of the War. 

  • It is likely that climatic points of the conflict, such as the potential for military confrontation with Iran, or Israel’s simultaneous conduct in numerous areas at its borders, such as in Gaza, Lebanon, the West Bank and Syria, that AI-led technology will continue to be manufactured and deployed to ensure Israel’s national security.

• Long-term

  • Once the War eventually ends, it is quite likely that greater domestic instability will resume, with the Knesset’s temporary suspension on the Israeli judicial reform being lifted and public pressure for a change to Netenyahu’s Government. Both factors may then again have a negative impact on investment in Israel as it had in 2023. 

  • Despite these domestic strains, it is likely that Israel will continue to maintain its global reputation as a centre of tech start-ups.