Last week, Israeli tech giant NICE announced its acquisition of Cognigy, one of Europe’s leading AI and bot companies, in what is considered the largest AI exit on the continent in recent years - a trustworthy source of pride for Israeli high-tech. The German company’s technology delivers a revolutionary solution for managing intelligent customer conversations, advanced automation, and unmatched service experiences.
And yet, here in Israel, most people will not experience this kind of innovation anytime soon.
While NICE sells cutting-edge solutions to clients worldwide, Israeli customers are still navigating outdated IVR systems from the 1990s, forcing them to “press 1 for customer service.” This is not a cultural problem or an inability to adapt to change - it is a pure business calculation. Israel sits at the top of the global innovation pyramid, but near the bottom when it comes to adoption, simply because our local market is small and not financially significant for global rollouts.
This is why many global companies, even those developing technology here, don’t prioritize launching new solutions in Israel. The case of Apple’s Siri is a perfect example - it was developed in Israel, but support for Hebrew came years after its initial release.
Israel may have long been crowned the Start-Up Nation, but it has yet to become a Scale-Up Nation for itself. We excel at development, creativity, and solving problems that don’t yet exist - but when it comes to adopting new technologies, we lag behind. The absurd reality is that our local market often gets left behind while Israeli innovations become the global standard.
Israel: A Start-Up Nation, not yet a Scale-Up Nation
This phenomenon is nothing new. Decades ago, when Israel led the world in agricultural innovation, we developed durable, flavorful fruit and vegetable varieties - but they were mostly exported, leaving local consumers with whatever was left over. Then, as now, we were great at building and inventing but slow to adopt at home.
In tech, this gap is visible everywhere. Israeli companies are creating groundbreaking solutions in digital health, fintech, cybersecurity, digital services, and AI. But Israeli customers typically enjoy these developments only after the rest of the world - not because we can’t, but because there’s no immediate business urgency. We’ve simply grown accustomed to legacy systems that haven’t been updated in a decade and to delaying change unless it is absolutely necessary.
The “shoemaker’s children go barefoot” syndrome starts with management. it is not that leaders here dislike technology - on the contrary, the drive to innovate is strong. But replacing systems requires cultural change, training, investment, and effort. When such changes are postponed again and again, we fall behind, settle for mediocre service, and miss the next leap forward.
Meanwhile, developing countries are thriving in their adoption of new tech. Without legacy systems to replace, they can leap straight to the latest generation of solutions. India, China, Singapore, Brazil - these countries have become advanced tech consumers on par with Europe. Even in the US, there are gaps, but there is a clear understanding that innovation is not a luxury - it is a business necessity. More companies are realizing that technology doesn’t replace people, it empowers them, freeing them to focus on what truly matters.
It is time for Israel to embrace that mindset, too. Our customer experiences, public services, and internal organizational systems should look like the future we proudly develop and showcase to the world. The NICE-Cognigy deal is a reminder that the innovation is already here - we just have to want to bring it home.
We have, right here in Israel, the companies, technologies, and talent capable of delivering advanced, locally tailored solutions - in our language and in a style that feels like home. The organizations already adopting Israeli AI are enjoying exactly that. Now it is everyone else’s turn.
Gidi Adlersberg is a Business Line Manager at AudioCodes, specializing in advanced Conversational AI solutions for enterprises.