Israel risks losing control of electricity, water, healthcare to foreign AI firms, official warns

Israel's AI chief Erez Askal warned that the country risks losing control of electricity, water, and healthcare to foreign AI firms within five to seven years if it does not develop its own AI capabilities and data centers. Speaking at Tel Aviv University's AI Week conference, he called for a balance between partnering with overseas AI producers and preserving sovereignty.

Israel's AI chief, Brig.-Gen. Erez Askal, warned on Monday that Israel and other countries risk losing control of critical infrastructure—including electricity, water, and healthcare—to foreign AI companies within five to seven years if they do not act. Speaking at Tel Aviv University's AI Week conference, Askal said that outsourcing AI to multinational firms, many based in the US and China, could make Israel dependent on overseas companies during a geopolitical crisis. He urged Israel to rapidly develop its own AI capabilities and data centers to retain independence. Askal noted the need to balance partnerships with dominant AI producers while preserving control over AI integrated into critical infrastructure. The article also reviews Israel's AI strengths—cybersecurity integration and edge solutions—and challenges, including limited space for data centers and slower government investment. The government approved new AI policies in June 2026, and Askal was appointed in October 2025 with a budget of NIS 120 million for 2026.