“While Israel does not have a comprehensive AI law, existing regulations already set out requirements for Israeli companies in the field of AI,” said Vered Zulaikha, Partner and Head of Cyber Affairs and AI Practice at Lipa Meir Law Firm. “For example, privacy and anti-discrimination laws are relevant to the implementation of AI and should be taken into account. As for the EU AI law, it will be of interest to Israeli companies operating on the European market. The law's scope is very broad, especially for systems implemented in the EU and when the output of AI systems is used throughout the EU.”
Zulaikha made the remarks at a conference hosted by the law firm Lipa Meir, where a group of experts met to discuss the implications of AI regulation and risk management. “Thus, Israeli companies dealing with AI technologies may fall within the scope of European law and therefore the implications must be taken into account by these companies as well as their investors.”
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Vered Zlaikha talks about challenges, risk management and regulations in the field of AI
(Photo: Daphna Ziv)
The introduction of tools such as ChatGPT and Gemini has accelerated the integration of AI, evolving it from the exploratory phase to widespread application. However, this progress comes with significant challenges, especially in regulation and fraud prevention. Different jurisdictions are addressing this issue: the EU has adopted comprehensive legislation, the US has innovation-promoting policies, and Israel has adopted a strategy supporting sector-specific regulation. These different strategies aim to balance the potential of AI with the need to protect users and maintain public trust.
“In the last year, mandatory legislation regarding AI in work-related aspects has been on the rise through state regulations, such as in New York,” Zulaikha added. “Israeli companies should therefore be aware of these changes, carefully map the AI technologies implemented within their companies, analyze potential risks from a legal perspective, and prepare for the development of internal policies, taking into account applicable Israeli, EU and US laws.”
Also present at the conference was Yaniv Kanat Maimon, professor of psychology at Reichman University and founding partner of ACUMENAI. He emphasized that AI algorithms are already beginning to “manage” people who rely too much on technology: “We are at the beginning of a new era in which machines will make more and more decisions on our behalf. Currently, 83% of companies are working on integrating AI tools, which has enormous implications in terms of the ability of these machines to impact our lives.”
According to Advisor Yosef Gedaryav, Director of AI Regulation and Ethics at the Ministry of Innovation, Science and Technology, Israel ranks 7th in global AI rankings in the Tortoise Media AI Index report and similar rankings, which are designed to look at parameters such as human capital, infrastructure, research, development, government strategies and commercialization, “Israel is considered a leader in the parameters of human capital and AI expertise, as well as in the translation of knowledge from academia to industry, while in other parameters Israel is considered less strong compared to other countries.”
He revealed that Israel has announced a National AI Plan, led by five government ministries and supported by the Ministry of Finance, at a cost of NIS 1 billion ($265 million) over five years, to make advances in the AI field, especially in areas that need strengthening.
“The AI arms race has been raging for several years now, but what was once a race to gain technological superiority has today become in fact a well-regulated arms race,” concludes Yoav Evenstein, an international AI consultant and expert. “This is because it is becoming increasingly clear that the unrestrained use of AI technologies can have devastating consequences, for example, the emergence of racial bias in AI models.”
Lipa Meir & Co. is one of Israel's leading law firms offering a full range of civil, corporate and commercial legal services. The firm operates through six main divisions, including Commercial Law, Litigation and Dispute Resolution, and the Technology, Corporate and M&A Division.
