The Economic Development Committee of the Jerusalem Municipality, chaired by City Council member Miriam Sela (of the “Awakening in Jerusalem” faction), convened last week for a meeting marking the launch of a long-term process. The initiative focuses on adopting programs and workflows to implement artificial intelligence across the city.
The goal of the initiative is to position Jerusalem as a leading city in AI development, making it accessible to residents and helping them adapt to the changes it brings.
“Artificial intelligence touches all aspects of life in the city, and we mainly see it in the area of services and user experience,” the committee chair opened the meeting. “AI creates both gaps and opportunities in the labor market, and it affects residents’ daily lives in ways that are relevant to municipal work. With this in mind, we are embarking on this journey and will address various areas that AI is transforming in the city, such as business, transportation, public health, and more. We are here not to fear the phenomenon, but to understand what lies ahead and act accordingly.”
The discussion focused on the changes AI is creating in the job market and its impact on a wide range of professions. “Intelligence is becoming a commodity that can be bought and sold, and work will no longer be just a source of livelihood. A new player is entering, saying: I am smart, efficient, and cheaper, and this challenges the value of humans in the workforce. This is a factor reorganizing reality. For example, the proportion of jobs performed exclusively by humans is expected to drop within five years from half to one-third,” said Efrat Bachar-Netanel, CEO of the Mosaic Institute, which examines the impact of AI on the labor market.
Bechar-Nataniel addressed the changes already affecting the market: “AI is expected to replace popular jobs such as office positions for accountants and clerks. Public systems are not accustomed to retraining individuals who completed a master’s degree and now cannot find their place. We are already seeing in the United States a drop in placement rates at prestigious institutions like Harvard, and young people seeking job security as electricians or plumbers.”
“Changing Course”
Regarding the situation in Israel, Bechar-Nataniel noted that business adoption rates of AI are among the highest in the world. The high-tech sector, with a 61% business adoption rate, pulls Israel upward in global comparisons.
“When examining business AI adoption rates geographically rather than by economic sector, Jerusalem — a city where most jobs are in the public sector — shows a troubling figure of just four percent. Considering that over half of public sector jobs could be enhanced through effective AI integration, the public sector must change course to benefit from the productivity advantages AI offers,” she noted.
The discussion also examined the municipality’s current provision of services through AI tools, revealing that most municipal services are gradually incorporating these tools.
“In a situation where we have about 60 unfilled service and call center positions, it is important that AI assistance is introduced to provide services to residents,” described Ayelet Sasson, Director of the Municipal Service and Customer Experience Division at the Jerusalem Municipality.
Throughout the discussion, additional initiatives and strategic processes were proposed to streamline municipal work using AI, including collaborations with students and educational institutions, professional training, business support, strengthening the city’s industry, inter-departmental cooperation, and more.
The committee chair concluded the discussion: “AI brings complexities — on one hand, it has the potential to reduce gaps, but on the other, it will dramatically transform the labor market. As a local authority, the government body closest to residents, we need to step in and lead a comprehensive process. Jerusalem has all the resources to be a pioneer and leader in such a process, thanks to being Israel’s largest city, with a strong municipality, diverse population, and opportunities to drive change. All eyes are on Jerusalem, and from here we will take these initiatives into a broad work plan.”