The Complete Guide to Using AI in the Healthcare Industry in Israel in 2025

Israel's healthcare landscape in 2025 combines world‑class AI innovation with a national plan that's still finding its footing: the Israeli National AI Program official site sets strategy and infrastructure goals, yet reporting shows only about 20% of the original 2021 budget released and many pilots stalled, including the delayed national compute capacity and the Nebius supercomputer effort cited in coverage that warns startups need thousands of GPUs to train modern models (Israel Tech Insider analysis: National AI Program stalls).

Still, practical healthcare advances are moving forward - AI medical imaging, digital therapeutics (eg, DarioHealth), and device‑side rehab tools like Sency's camera‑based physiotherapy solution (deployed to scale for an estimated 16,000 wounded) are real examples of impact - and that's exactly where practical training matters: Nucamp's Nucamp AI Essentials for Work bootcamp syllabus teaches nontechnical healthcare teams how to use AI tools, write effective prompts, and apply solutions safely across clinical and operational workflows.

Israel's national strategy reads like a high‑ambition roadmap - a commitment to build shared data platforms, expand longitudinal EHR access, and

“democratize” compute for researchers and startups through a central program

yet the engine hasn't fully turned over: the Israeli National AI Program official site (AI Israel) sets the goals, but reporting shows only about 20% of the original five‑year NIS 5.26B budget has been released and many pilots remain unfunded, leaving critical pieces such as a national GPU cluster still unrealized (Israel Tech Insider report on the National AI Program stalling).

Policy architecture is in place - a principled, sector‑specific approach to regulation and new draft privacy guidance from the Israeli Privacy Protection Authority - but the gap between policy and plumbing matters: startups raising product‑market fit can be crushed by compute costs when training modern models demands thousands of GPUs, so national promises like the Nebius supercomputer (a $140M tender intended to subsidize domestic training) become make‑or‑break infrastructure bets.

Leadership changes and plans to relocate compute to the Negev and Galilee signal intent, yet execution and sustained funding will determine whether Israel's strategy becomes a practical accelerator for healthcare AI or a compelling blueprint that never quite gets built.

Israel's data foundations give its healthcare AI a running start: decades‑long, longitudinal electronic health records - maintained since the 1990s - create rich time‑series that models can use to flag risks long before an acute event, as when Clalit's analytics identify early kidney‑failure signals and reach out proactively; see Cloudera press release on Clalit data platform (Cloudera press release on Clalit data platform).

The Ministry of Health's decentralized EITAN exchange and the earlier Psifas (Mosaic) concept knit HMO and hospital stores into a usable fabric while keeping access controlled - patients can opt out and particularly sensitive topics (psychiatric care, abortions, sperm donation) are excluded from routine sharing - details captured in national analyses of Israel's digital‑health strategy (Programm Gesundheit analysis of Psifas and EITAN national health-data exchange).

Practically, that means startups and researchers can build prediction and monitoring tools from a continuous record (a literal time‑lapse of patient health) while regulators and HMOs wrestle with consent, anonymization and governance; even the literature is advancing - a 2025 scoping review summarizes AI methods applied to longitudinal EHRs for cancer prediction, underscoring both promise and the need for careful validation.

“We will use Cloudera Data Platform to apply real time interfaces, artificial intelligence and machine learning to further enhance patient care.” - Liora Shechter, Clalit (Cloudera press release)

Predictive care in Israel pivots on two strengths: rich longitudinal data and a creative HealthTech ecosystem that turns signals into earlier action - think HMOs and startups that move beyond reactive medicine to prevention.

One striking example: Maccabi's AI, adapted with Medial EarlySign, trawled 27 years of records to flag roughly 2% of members (about 40,000 people) as high‑risk during COVID so they could be fast‑tracked for testing and tailored care (MIT Technology Review report on Maccabi AI identifying high‑risk COVID‑19 patients).

On the product front, Israeli innovators are adding noninvasive, AI‑driven monitoring to population health toolkits - MyOr Diagnostics' infant monitoring to predict allergies and eczema, VocaVibe's vocal biomarkers for Parkinson's, and Neurogait's digital markers for movement disorders all aim to transform continuous home and clinic data into earlier interventions (iTrade feature on Israel's diagnostic medicine and AI‑driven monitoring innovations).

Platforms that let teams explore and share data, including synthetic datasets and copilot assistants, help scale these predictive models while preserving privacy and enabling collaboration (MDClone ADAMS healthcare data platform for synthetic datasets and privacy‑preserving collaboration).

The payoff is concrete: fewer surprise hospitalizations and more targeted outreach - but success depends on ongoing validation, monitoring, and integration with clinical workflows to keep models reliable and useful.

“We wanted to explore what happens when a machine learning model is deployed in a hospital and allowed to influence physician decisions for the overall benefit of patients.” - Akhil Vaid, Icahn School of Medicine at Mount Sinai

Imaging AI is one of the clearest places Israel's health system is already reshaping care: hospital innovation arms and startups are wiring models into real workflows so scans with urgent findings don't languish for days - Assuta's RISE program, for example, shares de‑identified cases with more than 20 startups and adopted Aidoc to triage roughly 200,000 CT studies a year so suspected bleeds and emboli jump to the top of a radiologist's worklist within minutes (Assuta RISE partnership with NVIDIA for medical imaging AI); Aidoc's platform is now in several of Israel's largest centers and promises faster review and clearer escalation pathways (Aidoc deployment in major Israeli hospitals for radiology triage).

Beyond acute triage, long‑running HMO collaborations with vendors like Zebra Medical Vision have pushed population‑scale imaging AI into screening and opportunistic detection across Ichilov, Clalit and Maccabi, turning routine scans into preventive signals.

Meanwhile, point‑of‑care tools such as Dermalyser - now CE‑marked for melanoma detection on smartphone‑attached dermatoscopes - show how smartphone imaging and validated AI could one day tighten the loop between primary care, teledermatology and specialist referral in Israel's dense clinical network (Dermalyser CE‑marked AI melanoma detection tool and trial results).

The practical payoff is vivid: an AI flag can change a patient's trajectory in minutes - calling someone back from the road rather than waiting for a scheduled read - so adoption is less about novelty and more about reliably saving time and lives.

“We saw the impact right away,” said Dr. Michal Guindy, head of medical imaging and head of RISE at Assuta, describing a case where AI alerted staff to an intracranial hemorrhage and enabled immediate intervention.

Remote monitoring and telehealth in Israel have matured from pandemic improvisation into coordinated, hospital‑grade care models that literally keep beds free and patients safer at home: Sheba Medical Center's virtual hospital now delivers at‑home hospitalization, psychiatric home care, remote rehabilitation, home cardiac rehab, and high‑risk maternal‑fetal monitoring - backed by a self‑service data platform that uses synthetic and real‑world data to iterate services - and in Q1 2024 alone the program facilitated nearly 24,000 telemedicine visits and reached populations (including ultra‑Orthodox women taking up smartphones for the first time) with no reported severe adverse maternal‑fetal events (Sheba Medical Center virtual hospital report).

Complementing hospital programs, Israeli startups are turning ordinary phones into clinical tools - CatAI's smartphone camera monitoring app (used in Israeli home‑hospital programs and piloted abroad) won a $75,000 pilot to scale remote vitals tracking - and ensemble platforms like TytoCare enable remote physical exams that expand access to specialists without travel (CatAI smartphone camera monitoring pilot award, TytoCare remote examination platform overview).

The upshot for Israel's health system: homes become continuous monitoring hubs that can reduce rehospitalization and extend specialist reach, but success hinges on solving interoperability, equity and regulatory hurdles identified in implementation guidance.

“What do you do to remember where you park car? You take a picture with your smartphone, and this is how easy it is to use our app.” - Avner Rouach, CatAI (co‑founder)

Israel's mental‑health response in 2025 is a study in urgency meeting innovation: rising demand has pushed digital therapies from nice‑to‑have to mission‑critical, and local startups are answering with hybrid AI, VR and sensor‑based tools that extend clinician reach.

Coverage of the crisis charts a 300% jump in psychiatric drug consumption and an estimated “3 million people who are suffering from trauma,” which helps explain why platforms like Kai.ai (hybrid AI + clinician support), Calmigo (a handheld device donated at scale), and Behavidence (passive‑sensing monitoring) have been rapidly adopted alongside scaled NGO responses such as NATAL's pivot to WhatsApp, Zoom and AI triage (Calcalistech coverage of Israel's mental‑health crisis).

Global market analyses underscore the momentum - online therapy services are forecast at about $15.16B in 2025 - so Israel's mix of low‑friction digital tools, VR programs and clinician‑assisted AI is less experimental and more practical triage, helping people get immediate relief and targeted follow‑up care while systems sort out capacity and reimbursement (global online therapy market forecasts).

A vivid detail: Calmigo donated 1,300 units to affected families and children, illustrating how compact, nonpharmacologic interventions can be deployed quickly when clinics are overwhelmed - what started as emergency relief is now informing hybrid care pathways that aim to keep patients connected, triaged, and routed to human therapists when needed.

“And the estimation right now is that there are 3 million people who are suffering from trauma.” - Adi Wallach, CEO and Co‑Founder of Calmigo

Israel's small but intense tech‑bio cluster has leaned hard into AI to shave years and billions off the traditional drug pipeline: the AION Labs venture studio in Rehovot is a lightning rod for that effort, assembling cross‑disciplinary teams, pharma partners (AstraZeneca, Pfizer, Merck, Teva) and cloud support to spin out startups with seed support and wet + computational labs, while a steady stream of Israeli firms (Promise Bio, Pepticom, Senseera, NeuroKaire, Immunai, Converge) have raised follow‑on rounds to push platforms from epiproteomics to peptide therapeutics and multi‑omics assays.

Progress is neither guaranteed nor purely hype - AI drug discovery shows clinical momentum (dozens of candidates in trials globally) alongside recent high‑profile setbacks - so initiatives that combine capital, curated data and access to compute matter; prize programs such as the Nebius AI Discovery Awards (GPU credits and mentorship for winners) explicitly tackle the compute bottleneck that can stall model training and validation.

The result is a pragmatic, partnership‑heavy model: fast‑moving Israeli teams prototype mechanistic hypotheses, secure pharma validation, and aim to de‑risk targets or repurpose compounds so Phase II studies can move faster - all while the country's determination to push innovation forward is starkly visible (participants continued an AION workshop even amid nearby conflict).

For clinicians and startups in Israel, that means real opportunity - plus a reminder that rigorous validation and clinical proofs will be the currency that turns AI promise into better drugs.

“I'm incredibly optimistic,” - Mati Gill, CEO of AION Labs

Workforce change in Israel's healthcare sector looks more evolutionary than apocalyptic: a real‑time OECD snapshot finds 28% of Israeli businesses using AI (17% with paid tools, 11% with free ones) and most adopters reporting augmentation rather than mass layoffs - 89% say employment hasn't changed, while small shares avoided hiring (≈5%) or reduced staff (≈4%) - a pattern that matches on‑the‑ground hospital experience where AI extended capacity instead of simply replacing clinicians.

Practical case studies underscore the point: Sheba Medical Center rapidly leaned on AI and automation during the conflict - scaling remote rehabilitation programs and converting high‑risk antepartum care (the unit was pared from 39 to 15 beds) into intensive virtual monitoring - to treat more patients with fewer hands and keep critical services running (OECD real-time snapshot: AI and the world of work in Israel; Sheba Medical Center: AI use during the Israel–Hamas conflict).

The takeaway for healthcare leaders: adoption is uneven (high‑tech leads), paid AI integrations produce greater workforce effects, and investment in role redesign and staff training - already a common practice in Israeli tech - will determine whether AI becomes a reliable force‑multiplier rather than a disruptive threat (AI-human collaboration and training insights from Israel's tech sector), turning short‑term crisis hacks into durable clinical capacity.

Regulation in Israel in 2025 feels less like a legal roadblock and more like a shifting set of lane markers: there is no single AI law, so health AI is judged within existing medical‑device rules, privacy law and sectoral guidance - the Ministry of Health oversees device approval and clinical validation while the Privacy Protection Authority enforces data rules and published draft AI guidance in May 2025 - a reality captured in the ICLG guide to Israel digital health laws and regulations and the White & Case AI Watch regulatory tracker - Israel.

For beginners and clinicians building or buying tools, the checklist is clear and practical: prioritize robust clinical validation (MOH expectations), bake in privacy‑by‑design to meet Protection of Privacy Law and PPA guidance, lock down contractual IP and data terms, and document development decisions and monitoring plans to reduce liability under general tort and product‑safety rules.

A vivid, useful image: treat compliance as continuous monitoring - like an EKG for your product - and start small with pilots that collect real‑world evidence.

Nontechnical teams can gain these exact practical skills in a focused program such as Nucamp AI Essentials for Work bootcamp registration (15-week workplace AI program).