Israel's Policy on Artificial Intelligence Regulation and Ethics

What it is

Israel’s Policy on Artificial Intelligence Regulation and Ethics is the government’s statement of how AI should be governed in Israel. It was published in December 2023 by the Ministry of Innovation, Science and Technology together with the Ministry of Justice, and is Israel’s official AI policy.

The policy’s central decision is what it does not do. It does not propose a single, horizontal AI law in the style of the EU AI Act. Israel chose, for the time being, to forgo formal AI legislation and to govern AI through the regulators that already oversee each sector.

Who it applies to

The policy is addressed to government and to sector regulators, not directly to businesses. It creates no obligations or penalties for organisations. Its effect comes through the regulators that apply it, each of which may issue guidance, conditions or rules for AI within its own remit.

For organisations, that means AI governance in Israel depends on the sector. A bank, an insurer, a listed company, a health provider and a public body each look to a different regulator. Underneath all of them sits the Protection of Privacy Law, which applies to any AI that processes personal data.

What it requires

Sector-specific regulation. Sector regulators are responsible for identifying and addressing the risks and benefits of AI within their domains, rather than a single AI regulator.

A risk-based approach. Regulation should be proportionate to the risks of each use, aligned with the OECD AI Principles on trustworthy AI.

Soft and incremental tools. The policy favours soft regulatory tools, such as guidance and voluntary standards, which let the framework develop step by step, with binding regulation where a specific risk justifies it.

International interoperability. Israeli rules should align with those of its main trading partners, so Israeli companies are not held to standards that set them apart.

Ethical principles. The policy sets out principles including respect for fundamental rights and the public interest, equality and prevention of unfair discrimination, transparency, reliability, robustness, security and safety, and accountability for those who develop, operate and use AI.

Coordination. The policy provides for a government AI policy coordination centre to advise regulators and promote consistency.

How it is being applied

Two sector outputs show the policy at work. In December 2025 an interagency taskforce published its final report on AI in the financial sector. Its members were the Ministry of Justice, the Ministry of Finance, the Competition Authority, the Israel Securities Authority, the Capital Market, Insurance and Savings Authority and the Bank of Israel. It favours a risk-based, sector-specific approach and proposes a framework of action for financial regulators, with attention to transparency, explainability, data controls, fraud and generative AI.

On 19 May 2026 the Israel National Digital Agency, with the Ministry of Justice and the Ministry of Innovation, Science and Technology, published version 1.0 of the Guide for Responsible AI Use in the Public Sector. It is best-practice guidance rather than a legal instrument, with a traffic-light system for risk-based approval of AI uses and a separate track for limited, supervised experimentation.

The Privacy Protection Authority, applying the existing privacy law, has also published draft guidance on AI systems. On 16 June 2026 the government approved a National AI Program focused on computing infrastructure, research, skills and public sector adoption.

Key dates

• December 2023. Policy on AI Regulation and Ethics published as Israel’s official AI policy.
• December 2025. Final report of the interagency taskforce on AI in the financial sector.
• 19 May 2026. Guide for Responsible AI Use in the Public Sector, version 1.0.
• 16 June 2026. Government approves the National AI Program.

How it relates to other frameworks

The policy defers to international frameworks rather than writing its own rules, so organisations in Israel usually structure AI governance on one of them. The NIST AI RMF and ISO/IEC 42001 both fit its risk-based approach and are recognised by Israel’s main trading partners. Israeli companies whose AI reaches the EU market may also be caught by the EU AI Act.

A note on this page

This is Aicura’s reading of Israel’s AI policy and how it is applied. It is not legal advice. Read the policy and sector guidance published by the Israeli government, and take advice on how they apply to your organisation.