Finance Official Warns AI Shake-Up Could Cut a Third of Israel’s Civil Service

At a conference of the Accountant General’s Division on Monday, Accountant General Yali Rotenberg cautioned that the rise of artificial intelligence could push tens of thousands of government employees out of work.

“Following the artificial intelligence revolution, a third of state employees are expected to find themselves outside the system,” Rotenberg told attendees. He explained that while technology is vital for efficient service, the coming changes will be disruptive. “If we don’t engage in technology, we won’t be able to provide quality service and we’ll waste public money. We’ll simply be left behind. Although there will be no substitute for the human factor, the AI revolution will create significant upheavals,” he said.

Rotenberg estimated that, excluding teachers, police officers, and medical staff, roughly 60,000 of Israel’s 100,000 civil servants remain at risk. About a third of them could ultimately lose their jobs as automation expands.

He also spoke about the financial burden of the war, revealing that Israel has raised around 500 billion shekels in new debt since the fighting began. “We have carried out some of the largest global issuances in the country’s history: $8 billion in 2024 and another $5 billion in 2025,” he noted.

According to Rotenberg, these bond sales were achieved “quietly, in constant dialogue with investors and rating companies, during the most difficult period we have known in terms of the image of the State of Israel.”

Addressing the credit downgrade that followed the October 7 war, he said, “I was not surprised by the downgrade, but Moody’s double downgrade was excessive. After the war is over, the rating will recover.” He added that markets had already priced in much of the risk, but rating agencies focus on short-term data and “do not consider long-term moves.”