Israel leads global AI-native startup rankings
Israel has the world’s highest concentration of AI-native startups, according to a new global study, Engines of Growth, conducted independently by Strand Partners for Amazon Web Services.
The report found that 31% of Israeli startups less than five years old are classified as AI-native, meaning they were built around artificial intelligence from day one. Israel ranked ahead of the United States, where AI-native companies account for 30% of young startups, as well as France and Japan, each at 28%.
The study also found that Israeli AI-native startups are growing revenue by an average of 185% annually, compared to 74% for traditional Israeli startups, and are 5.9 times more likely to generate at least USD 1 million in annual revenue.
According to the report, nearly half of Israeli AI-native startups generate most of their revenue outside Israel, while 86% have developed proprietary intellectual property, including customized foundation models. The findings point to Israel’s continued strength in building globally oriented, technology-intensive startups around emerging AI capabilities.
Read more in Calcalist.
