A new study from the Taub Center reveals that artificial intelligence is systematically displacing young native workers in Israel, concentrating unemployment in previously stable occupations. The research, conducted by Michael Debowy, Prof. Gil Epstein, and Prof. Avi Weiss, indicates that while overall unemployment has not risen, the composition of the unemployed has shifted, with younger individuals and those in traditional sectors bearing the brunt of the technological transformation.
Prof. Gil Epstein stated that “The era of hi-tech workers’ immunity is over,” explaining that AI accounts for approximately a fifth of the increase in programmer unemployment and primarily impacts young people. He added that while experienced staff become more efficient with machine assistance, the “juniors” are the first to suffer the consequences, warning that those who do not adapt their skills will be “left behind.”
The study found that between 2019 and 2022, workers in occupations at high risk of displacement by AI constituted 14% to 16% of all Israeli unemployed. By 2025, this share had increased significantly to between 20% and 25%. Among software developers, AI is responsible for 12% to 20% of the unemployment increase recorded between 2022 and 2024 and 2025. For sales representatives, AI explains 10% to 26% of the increase in joblessness.
The Cost to the Native Workforce
Michael Debowy highlighted that robots, despite their high implementation cost, also contribute to job displacement, albeit more slowly than generative AI. He noted that traditional local manufacturing in Israel has required fewer workers because of automation, with a third of such workers being replaced in recent years. This trend directly impacts the native working class reliant on these sectors.
Prof. Avi Weiss underscored that technology is “not only replacing working hands but is completely changing the rules of the game,” leading to much tougher competition for existing jobs. He warned that those who fail to adapt their skills to the AI era “may find themselves pushed out.” The Taub Center study also cited US evidence showing a 13% decline in employment among young workers aged 22 to 25 in occupations vulnerable to automation, while more experienced workers remained largely unaffected.
Elite Integration into Global AI Systems
This internal displacement of native workers occurs as Israel’s defense modernization accelerates its integration into a global AI-enabled warfare ecosystem. The nation’s defense strategy is increasingly focused on artificial intelligence, autonomous systems, and electronic warfare. This includes plans to acquire F-35 and F-15IA fighter jets from Lockheed and Boeing, a move described as enabling a “technological leap” in integrating autonomous flight capabilities and next-generation defense systems.
The US Department of Defense has simultaneously announced partnerships with major transnational tech corporations, including SpaceX, OpenAI, Google, NVIDIA, Reflection, Microsoft, and Amazon Web Services. This collaboration aims to establish an “AI-first” approach for the armed forces, streamlining data synthesis and augmenting warfighter decision-making at high security levels. The Pentagon’s GenAI.mil platform already serves over 1.3 million department users, generating millions of prompts and deploying hundreds of thousands of agents within its first five months.
Companies like Tenna Systems, which secured $13.5 million in February 2026, are developing platforms described as “AccuWeather for electronic warfare,” turning existing sensors into live electromagnetic detectors. R2 Wireless, another firm, uses passive RF sensing to detect and geolocate wireless signals and is deployed with NATO forces, having won the US Army’s xTech competition in the counter-UAS category. The increasing reliance of drones on vision-based navigation, using onboard cameras and AI to operate without GPS, further exemplifies this globalist mechanism of technological integration.
Managing the Decline
In response to the domestic labor market shifts, Prof. Avi Weiss suggested that “At the policy level, the state must already activate assistance systems for the newly unemployed and design programs for them to provide them with skills complementary to artificial intelligence to enable them to reintegrate into the changing labor market.” This call for state intervention highlights a strategy of managing the economic displacement rather than challenging the underlying forces driving it, potentially shifting the burden of adaptation onto the native population and the public purse, while transnational elite interests continue to profit from the AI revolution. The researchers noted that structural factors, including a slowdown in the hi-tech sector and the growing share of digital-age occupations at risk, also shape this trend.