What is the future of AI, and what is the role of AI in our future? On a global scene, some markets take a bold approach and encourage risky experimentation, while others are more conservative and prefer safe strategies. Who is who in this AI ecosystem, and why is this happening?
Maria Greicer, VP Partnerships at Keymakr, explores the regions and industries leading the charge, examining the key drivers behind their growth and the broader implications for AI development, adoption, and global competitiveness.
Israel: A Culture of Risk and Rapid Innovation
Ranked third in commercial indicators in the 2024 Global AI Index, Israel has remained the third-largest global hub for capital raised, following only Silicon Valley and New York. It also hosts numerous multinational AI R&D labs, solidifying its status as a center for innovative advancements.
Why has Israel earned that status? What’s different here?
A few factors explain this. Israel has a strong risk-taking culture deeply embedded in its tech ecosystem. It’s not uncommon for industry professionals to aspire to launch their startups, often influenced by colleagues or big-buck “exits”— the acquisition of a young tech startup by a large corporation. Starting a company, developing new technology, and pushing boundaries are considered normal and even expected.
This entrepreneurial mindset fosters a cycle of risk-taking and experimentation. The prevailing attitude is: “If it works, great. If it doesn’t, that’s also great. Let’s move on to the next idea.” Failure is not stigmatized but is seen as a learning opportunity. As a result, Israel has a high turnover of startups and technology ventures, particularly in AI and deep tech. The more risks people take, the higher the likelihood of groundbreaking innovations. This culture has contributed significantly to Israel’s reputation as a global leader in AI and emerging technologies.
Of the 9,000 Israeli startups, more than 2,200 use AI, and Israel — with 73 — has the third-most generative AI firms in the world.
Maria emphasizes, “Israel is renowned worldwide as a technology powerhouse, with the highest number of startup companies per capita. In 2024 alone, private technology funding in Israel surged by 30% compared to the previous year, reaching $10.2 billion by Q3. This remarkable growth underscores investors’ confidence in Israel’s dynamic tech ecosystem. From medicine innovations to climate technologies, Israeli companies are not just addressing challenges but thriving in them.”
US: A Balance of Capital and Innovation
The U.S. is home to many of the world’s most influential technology companies, with Silicon Valley leading innovation. While there is a strong willingness to take risks, the approach differs from Israel’s. With vast capital resources and opportunities, U.S. entrepreneurs can afford to be selective about where they invest their efforts. The tech sector is not the only profitable sector; oil and minerals and producing goods are strong industries. Therefore, talent and capital are distributed across all sectors.
“Working with U.S. companies, Keymakr sees a strong demand for AI-based solutions in autonomous systems, healthcare, and defense. However, data quality remains the top priority across all industries,” says Maria.
While the U.S. fosters technological advancements, the risk appetite varies across regions. Silicon Valley, for example, is known for its aggressive pursuit of innovation and capital returns. Still, on a broader scale, the U.S. startup ecosystem tends to be slightly more conservative than Israel. While risk-taking is encouraged, there is a greater emphasis on predictable growth and secure business strategies. The recent U.S. decision to cancel regulations aimed at mitigating AI risks will fuel innovation across various industries and domains, particularly in drone technology and autonomous systems. Furthermore, the U.S. market is heavily influenced by major tech companies such as Google, Amazon, and Microsoft, which are investing heavily in AI research and development. The Artificial Intelligence market is projected to reach US$66.21bn in 2025, the largest market size globally.
Europe: Stability Over Risk
The European market, in contrast, strongly emphasizes stability, profitability, and predictability. Some of the EU economies, which have been very beneficial from automotive-related production, rely on more traditional businesses that are not designed and built for fast exponential growth but more of multi-generation businesses. Companies and investors are generally more risk-averse, prioritizing sustainable, long-term growth over high-risk, high-reward opportunities.
This cautious approach can sometimes hinder radical innovation. Unlike in Israel or Silicon Valley, where disruptive ideas are often embraced despite uncertainty, European businesses tend to favor incremental advancements over high-risk, transformative breakthroughs. Societal and business norms encourage a more structured, pragmatic approach, which, while beneficial for long-term stability, can slow down the pace of cutting-edge innovation.
Besides mentality and national characteristics, the European Union AI Act, which is recently coming into force, is another key factor impacting innovative companies operating in Europe. It enforces a strict regulatory framework that makes it challenging for businesses to develop or deploy certain AI models, particularly those deemed potentially harmful, such as facial recognition systems.
Companies are required to obtain specific licenses to work with certain AI technologies, and in many cases, these regulations make compliance too difficult for smaller businesses. As a result, some companies may choose to leave Europe or avoid operating there altogether — similar to the impact seen with cryptocurrency regulations. While larger companies that can afford the investment may adapt to compliance requirements, the act could ultimately drive AI innovation out of Europe in favor of markets like the U.S. or Israel.
But despite these obstacles, the AI market in Europe continues to advance and is expected to grow. The market size is projected to reach US$41.83 billion in 2025, with an annual growth rate (CAGR 2025–2030) of 27.65%, resulting in a market volume of US$141.76 billion by 2030.
Stay tuned; the next part of the article will provide a more detailed overview of the top industries.
