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INSS Insight
The Token Economy: Understanding the Infrastructure Behind the AI Revolution
Artificial intelligence is not only altering the processing capabilities of computers, but also creating a new economy based on the token as the central unit of measurement for model usage, the demand for computing power, and the economic cost of operating them. The token reflects the scope of inference work—the processing performed by the model in real time—and therefore serves as a direct metric for the consumption of computing resources, including graphics processing units (GPUs), data centers, and energy. In this sense, the token...
Hadas Lorber | Ido Ben-David
18.08.2026
Policy Papers
The Next Battle for Artificial Intelligence: Should Israel Become a Chip Manufacturing Powerhouse?
The global race for artificial intelligence is fundamentally reshaping how states perceive technological infrastructure. While competition in recent decades revolved around control over data, digital platforms, and AI models, it has become clear that a nation’s strategic advantage will now largely be determined by its control over the physical AI value chain—spanning critical minerals, advanced chip manufacturing, high-performance computing (Compute) infrastructure, data centers, energy, and frontier models. The competition is...
Hadas Lorber
29.07.2026
INSS Insight
From Red to Blue-and-White: The Strategic Necessity of Developing the Israeli Drone Industry
The increasing use of drones on the battlefield, particularly since the Swords of Iron war, has underscored Israel’s reliance on Chinese-made drones and components, as well as Chinese dominance in the industry’s supply chains. Despite their operational advantages, Chinese drones pose a range of security, technological, and geopolitical challenges for Israel, highlighting the need to strengthen the domestic drone industry while reducing dependence on foreign technology.
Yuval Less
07.07.2026
Policy Papers
The Battle over Access to Artificial Intelligence: Israel’s Next Strategic Challenge
The restrictions recently imposed on Anthropic — including the U.S. administration’s directive to limit access to certain models for users and entities outside the United States on national security grounds[1] — constitute a significant milestone in the evolving relationship between technology, national security, and foreign policy. Whereas over the past decade, the discourse surrounding digital sovereignty has focused on issues such as privacy, data localization, regulation, and cloud infrastructure, recent developments point to a...
Hadas Lorber
01.07.2026
INSS Insight
The Pentagon’s AI-First Doctrine and Its Implications for Modern Warfare: Lessons from the Conflict with Iran
In recent years, the integration of artificial intelligence into defense systems has evolved from a decision-support tool into a strategic infrastructure shaping the conduct of war. Within this trend, the Pentagon’s adoption of the AI-First doctrine marks a significant conceptual shift from the limited integration of artificial intelligence systems to a systemic approach in which AI becomes a foundational component in the chain of command, in intelligence collection and analysis, and in the planning of multi-theater operations. This...
Hadas Lorber
19.03.2026
Policy Papers
Digital Sovereignty: A Conceptual Framework for Israel and Policy Recommendations
Digital sovereignty has, in recent years, become one of the central components of national power, economic resilience, and security. Artificial intelligence, cloud computing, data, and capital-intensive computing infrastructure constitute foundational elements for governmental, military, and economic activity. Accordingly, control over digital infrastructure is not merely a technological or economic issue but a strategic concern of the highest order. Israel, as a powerhouse of technological innovation, currently finds itself in a...
Hadas Lorber
23.02.2026
INSS Insight
Subsea Data Centers: An Opportunity for the State of Israel
The accelerated growth of high-performance computing—particularly for artificial intelligence applications—has driven a sharp increase in electric demand, water consumption for cooling, and land use in dense urban areas. These trends are placing unprecedented pressure on existing data-center infrastructure. Against this backdrop, an innovative approach has emerged in recent years: the deployment of subsea data centers, which leverage the maritime domain as an alternative infrastructure platform, with both environmental and...
Yuval Eylon
09.02.2026
Technology Platform
Laser Systems for Object Detection and Three-Dimensional Mapping
The laser is an auxiliary tool on the modern battlefield, used either as a weapon—such as a high-power laser—or as a supporting means, such as a target designator or range finder. One of the most prominent uses of lasers is as a type of sensor, or a kind of sensitive radar, for detecting stationary or moving objects and for highly accurate area mapping, in a system known as LiDAR (Light Detection and Ranging).
Yehoshua Kalisky | Anna Sokolenko | Iky Hazan
19.01.2026
INSS Insight
“We Will Export Data Instead of Oil”: The Rise of the Gulf States as Artificial Intelligence Powers and Its Geopolitical Implications
Saudi Arabia, the United Arab Emirates, and, to a more limited extent, Qatar bet on artificial intelligence as capable of replacing oil and gas in the future as a source of economic growth, regime stability, global power, and security relevance. By establishing computing infrastructure, forming partnerships with global technology giants, and developing large-scale human capital, the Gulf states aspire to control a significant share of global AI production and deployment alongside the major powers while acquiring independent...
Ilan Zalayat
11.01.2026
INSS Insight
Recommendations of the Nagel Committee—Rushing Toward the AI Abyss
The conclusions of the National Committee for Accelerating the Field of Artificial Intelligence, chaired by Prof. Yaakov Nagel, which were published recently, proposed a wide-ranging vision for the role of artificial intelligence in the State of Israel. The report’s conclusions and recommendations carry significant economic costs and have led to extensive public criticism. A closer look at the recommendations—particularly those with significant costs—raises concerns that the Nagel Committee chose to focus on acquiring status symbols...
Ariel Sobelman | Michael Genkin
05.11.2025
INSS Insight
Does Israel Need a National Language Model?
The world of artificial intelligence increasingly relies on large language models and chatbot applications. Through them, end users—from private individuals to government agencies—collect, generate, and consume most of the knowledge needed to manage their daily lives. Advanced nations are investing in building national language models that embody their culture, values, and national narratives. Israel has not yet developed such a model and must therefore rely on foreign systems and the narratives embedded within them. Just as the...
Ariel Sobelman | Michael Genkin
21.10.2025
Technology Platform
Electromagnetic Bombs
Electromagnetic bombs (EMBs) are weapons based on electromagnetic radiation in the microwave spectrum, with destructive potential against electronic systems including communications, control systems, computers, and electrical systems, up to the point of paralyzing security, economic, and health infrastructures. EMBs have inherent advantages: They operate at the speed of light, are easy to use, cover wide target ranges, and function under all environmental and weather conditions. There are several types of EMBs, and they can be...
Yehoshua Kalisky | Iky Hazan
11.09.2025

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  • Research

    • Topics
      • Israel and the Global Powers
      • Israel-United States Relations
      • Glazer Israel-China Policy Center
      • Russia
      • Europe
      • Antisemitism and Delegitimization
      • Iran and the Shi'ite Axis
      • The Campaign Against Iran and the Shiite Axis
      • Iran
      • Lebanon and Hezbollah
      • Syria
      • Yemen and the Houthi Movement
      • Iraq and the Iraqi Shiite Militias
      • Conflict to Agreements
      • Israeli-Palestinian Relations
      • Hamas and the Gaza Strip
      • Peace Agreements and Normalization in the Middle East
      • Saudi Arabia and the Gulf States
      • Turkey
      • Egypt
      • Jordan
      • Israel’s National Security Policy
      • Military and Strategic Affairs
      • Societal Resilience and the Israeli Society
      • Jewish-Arab Relations in Israel
      • Climate, Infrastructure and Energy
      • Terrorism and Low Intensity Conflict
      • Cross-Arena Research
      • Data Analytics Center
      • Law and National Security
      • Advanced Technologies and National Security
      • Foreign Information Manipulation and Interference
      • Economics and National Security
    • Projects
      • Preventing the Slide into a One-State Reality
      • India-Middle East-Europe Economic Corridor (IMEC)
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