TLDR: AI-related job openings in Israel’s high-tech sector doubled in the first half of 2025 compared to all of 2024, driven by rapid adoption of generative AI and increased venture capital funding, according to a report by GotFriends, Israel’s largest tech-recruitment firm. This surge highlights a significant transformation in the market, with a strong preference for specialized AI talent and a notable increase in compensation for these roles.
Israel’s high-tech job market has experienced an unprecedented surge in demand for artificial intelligence (AI) professionals, with the number of AI-related positions opened in the first half of 2025 doubling that of all of 2024. This significant finding comes from a half-year report released on Sunday by GotFriends, the largest tech-recruitment firm in the country.
The firm described the current demand as ‘unprecedented,’ attributing it to several key factors. These include the rapid adoption of generative AI across various aspects of product development and marketing, a burgeoning wave of startups focusing on agentic AI and large-language-model (LLM) infrastructure, and established companies increasingly integrating AI at the core of their product strategies. Furthermore, a robust influx of venture capital funding into AI-focused ventures has significantly fueled the demand for top-tier talent.
GotFriends identified six leading job titles in the current talent race: AI researcher/scientist, LLM specialist, AI security researcher, generative AI developer, AI-focused data engineer, and AI product manager. Compensation for these specialized roles reflects the high demand, with the average monthly pay at companies specializing in AI reaching ₪43,085 (approximately $11,500), making it the highest-paying sector within Israeli tech. Engineers possessing hands-on expertise in models such as GPT or LLaMA, particularly in areas like fine-tuning, retrieval-augmented generation, or product integration, command a premium over developers with only general AI exposure.
While AI roles are flourishing, the broader tech landscape shows a mixed picture. Compensation for C++, Python, product management, and algorithms roles saw a 4-6 percent increase in the January–June period. Conversely, roles in quality assurance, mobile development, and frontend development experienced salary drops of 3-10 percent, largely due to increased automation and a more ample talent pool in these areas. Mid-career professionals, defined as those with three or more years of experience, continued to see their earnings grow, averaging ₪39,247 ($10,500) a month, up from ₪37,071 in 2024. However, junior-level pay remained stagnant at approximately ₪17,500 ($4,700), underscoring a clear market preference for proven, specialized talent. The report also noted a gender pay gap in high-tech, standing at ₪2,600 per month.
To secure highly sought-after candidates quickly, several employers have resorted to reinstating signing bonuses, with some offering incentives equivalent to one to six months’ salary for ‘mission-critical’ positions.
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Shiri Vax, CEO of GotFriends, commented on the market dynamics, stating, ‘The hi-tech market isn’t contracting; it’s transforming around AI.’ She further advised professionals, ‘Anyone being laid off today? It’s not only juniors; even seasoned core staff are affected. My advice: understand where the world is headed and connect your experience to what’s hot now—and what will be hot tomorrow.’
