## The Impact of Artificial Intelligence on Israel’s Labor Market

_Selected Issues Papers, July 13, 2026_

## Source details

**Canonical URL:** [The Impact of Artificial Intelligence on Israel’s Labor Market](https://www.imf.org/en/publications/selected-issues-papers/issues/2026/07/13/the-impact-of-artificial-intelligence-on-israels-labor-market-577711)

## Other formats

- [Markdown version](/en/publications/selected-issues-papers/issues/2026/07/13/the-impact-of-artificial-intelligence-on-israels-labor-market-577711/index.md)
- [Structured JSON version](/en/publications/selected-issues-papers/issues/2026/07/13/the-impact-of-artificial-intelligence-on-israels-labor-market-577711/index.json)
- [Bundle manifest](/en/publications/selected-issues-papers/issues/2026/07/13/the-impact-of-artificial-intelligence-on-israels-labor-market-577711/bundle-manifest.json)

## Bibliographic details
- Authors: Ece Ozge Emeksiz
- Published: July 13, 2026
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229052931.018

---

### Summary and key finding
- Artificial intelligence (AI)—particularly Generative AI—has the potential to raise productivity but could reshape workplaces across sectors.
- Using occupational microdata, the paper assesses the potential impact of Generative AI on Israel’s labor market and benchmarks it against selected European economies.
- The results indicate that most Israeli workers are likely to benefit from AI adoption.
- However, about one-fifth of the workforce faces high exposure with low complementarity, indicating their vulnerability to displacement.
- To assist workers at risk of job displacement, a comprehensive lifelong learning strategy—including reskilling, upskilling, and mid-career training—is essential.

### Vulnerability and labor-market implications
- Exposure profile: most workers expected to benefit from AI adoption; about one-fifth of the workforce faces high exposure with low complementarity and are vulnerable to displacement.
- Sectors and occupations: AI could reshape workplaces across sectors (specific sectoral breakdowns and occupational microdata analysis are used in the paper).

### Policy recommendations
- Implement a comprehensive lifelong learning strategy focused on:
  - Reskilling
  - Upskilling
  - Mid-career training
- Policies aim to assist workers at risk of job displacement by improving complementarity with AI technologies and facilitating transitions.

### Methodology and benchmarking
- Approach: analysis based on occupational microdata.
- Benchmarking: results are benchmarked against selected European economies to contextualize Israel’s exposure and complementarities.

### Publication and metadata
- Author: Ece Ozge Emeksiz
- Date: July 13, 2026
- Series: Selected Issues Paper No. 2026/061
- Volume: 2026
- Issue: 061
- Pages: 16
- DOI: https://doi.org/10.5089/9798229052931.018
- Stock No: SIPEA2026061
- ISBN: 9798229052931
- ISSN: 2958-7875
- Subjects: Education, Labor, Labor force, Labor markets
- Keywords: AI, Artificial Intelligence, Digitalization, Europe, Global, IMF country, IMF staff, Israel, issues paper, Labor force, labor market exposure, Labor Markets, workforce composition

*The Impact of Artificial Intelligence on Israel’s Labor Market, Selected Issues Papers (2026), Ece Ozge Emeksiz.*

---

## Content in this bundle

- **Sipea2026061**
  - [Sipea2026061 (Markdown version)](/-/media/files/publications/selected-issues-papers/2026/english/sipea2026061.pdf.md){rel="alternate" type="text/markdown"}
  - [Sipea2026061 (PDF)](/-/media/files/publications/selected-issues-papers/2026/english/sipea2026061.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2026/07/13/the-impact-of-artificial-intelligence-on-israels-labor-market-577711_