Despite the rapid growth, adoption of Generative AI technology by enterprises has been slow due to concerns about privacy, security, copyright, and model hallucinations. However, these concerns present opportunities for startups to address. Remagine Ventures is actively investing in this space, looking for solutions in AI Agents, Vertical SaaS AI, workflow automation, and new applications for creative technologies. The firm believes that as the Generative AI sector matures, big startup successes will emerge from Israel.
Key takeaways:
- The generative AI market in Israel is rapidly expanding, with the local landscape now covering 27 categories and featuring 238 companies, almost double the number from September 2023.
- The total funding amassed by all Israeli companies in this sector to date is approximately $5.47 billion, with the healthcare category leading in total funding raised at $928.16 million.
- Despite the growth, enterprises have been slow to adopt Generative AI technology due to concerns about privacy, security, copyright, and model hallucinations.
- Not all companies using generative AI qualify as generative AI entities. Factors to consider include whether generative AI is a central focus of the company's business, the depth of expertise the company has in generative AI, the company's investment in research related to generative AI, and the company's long-term vision and goals.