Artificial intelligence is now a top priority for companies worldwide. According to a new report by Israel-based Startup Nation Central, 83% of firms rank AI as one of their five main strategic goals. Yet, the study highlights two very different approaches: large global companies are using AI to cut costs and raise productivity, while Israeli firms are applying AI to drive growth and reshape their products.
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Global companies focus on efficiency
Globally, AI adoption has moved beyond the test phase. Most companies now apply tools in areas such as sales, HR, legal, and IT. The main aim is to save on costs and speed up work. In fact, 81% of companies say they use AI to improve internal efficiency. At the same time, 63% are building AI features in-house, and 43% are deploying third-party models. Some firms use both methods in what the report refers to as a ‘hybrid strategy.’
However, many executives still struggle to measure business impact. More than half of R&D leaders admit to lacking clear targets for their AI projects. Additionally, 45% report facing talent shortages that hinder progress. For investors, this means the link between spending and returns is not always easy to see. Companies like International Business Machines (IBM), Microsoft (MSFT), and Alphabet (GOOG) continue to integrate AI, yet the path to clear financial gains is not always straight.
Another trend is the shift from revenue growth to cost savings. AI is being applied to support functions that cut manual work and reduce expenses, rather than to create new revenue streams. This includes automation in customer support, IT, and security. Yet in more sensitive areas such as risk management or personalization, firms have slowed down adoption due to data and compliance concerns.
The report also notes a rise in the use of public and synthetic data to train models, alongside owned data. This marks a step toward more diverse and scalable data strategies, albeit with a greater focus on control and compliance.
Israel’s applied AI advantage
Israel presents a different story. The country’s startup ecosystem treats AI as a growth engine, not just a tool for cost control. According to the survey, 84% of Israeli firms report using AI in R&D and engineering, compared with 60% worldwide. By contrast, fewer Israeli firms deploy AI across HR or IT functions.
A key factor is the preference for in-house development. About 38% of Israeli companies build or customize AI systems themselves, compared with 33% globally. This reflects Israel’s engineering-driven culture and its strong tech talent pool. Only 33% of Israeli firms report talent shortages, versus 48% of global peers.
Israeli executives also show more confidence in returns. Around 26% say they are very sure AI projects will lead to measurable revenue gains, compared with 20% worldwide. This belief is supported by a track record of exits, as Israeli AI firms are four times more likely to be acquired by large multinationals than non-AI firms.
Notable companies illustrate the point. Navina applies AI to patient data in healthcare, while ActiveFence uses AI to automate trust and safety work for major platforms. These firms show how applied AI can solve specific business needs and build revenue scale.
The path forward
For investors, the study suggests two key takeaways. Globally, AI is a steady tool for efficiency, with companies like Nvidia (NVDA) and Amazon (AMZN) providing infrastructure and cloud support for adoption. In Israel, startups are pushing applied AI to unlock growth, which often leads to quicker revenue paths and strong acquisition interest.
The report concludes that the future of AI will depend on building data strategies that ensure control, safety, and user value. Applied AI solutions that target clear, high-value problems are the most likely to deliver strong business impact. For investors following the space, the divide between global efficiency and Israel’s growth focus is worth watching.
We used TipRanks’ Comparison Tool to line up all the big AI companies that are mentioned in the article. This helps investors gain a wider look on each of the companies and the AI industry as a whole.
