EY JOURNEY Conference Examines Artificial Intelligence Impact on High-Tech

Artificial intelligence is no longer just a tool helping employees complete tasks. As technology advances, it threatens to alter how companies operate, the services they provide, and even the need for familiar job roles. However, alongside fears of job losses and losing control over technology, some industry leaders see the revolution as a significant opportunity for the Israeli high-tech sector.

These questions took center stage on Tuesday at the JOURNEY conference hosted by accounting and consulting firm EY, bringing together entrepreneurs, investors, and technology executives from Israel and around the world. Discussions focused on the impact of artificial intelligence on the economy, the future of employment, and the sectors expected to attract investments in the coming years.

No Map, No Familiar Tools

Noam Kantorovitch, co-CEO of EY Israel, addressed the gap between the grand promises of artificial intelligence and growing concerns over its consequences. Artificial intelligence holds the promise of a better world: better healthcare, better education, and more opportunities. But alongside this promise come warnings, he noted.

Kantorovitch cited warnings from Dario Amodei, CEO of artificial intelligence company Anthropic, regarding the possibility that technology might develop beyond human control. He also referenced predictions by Elon Musk suggesting that robots and artificial intelligence could make products and services more accessible while simultaneously impacting many jobs.

This is a journey of a new kind. There is no map. There is no familiar tools. Anything can happen, Kantorovitch said.

Beyond Software: Artificial Intelligence Changes the Business Model

One of the central shifts discussed at the conference is the transition from using software to execute tasks to artificial intelligence systems capable of independently performing growing portions of work.

According to Kantorovitch, for every dollar organizations spend on software, they spend about six dollars on the people using it to perform the work. The development of AI agents may enable technology companies to tap into this market as well, selling not just work tools but a service that performs the task itself.

Instead of a company paying for software and employing staff to operate it, it may in the future purchase an artificial intelligence-based service that executes the work. This shift could open new markets for technology companies while raising questions about the future of certain jobs.

Regarding the local industry, Kantorovitch estimated that Israel could benefit from this transformation, partly due to its accumulated experience in cybersecurity, semiconductors, robotics, and defense technologies. He added that artificial intelligence can also help address labor shortages within the economy.

Kantorovitch also addressed Israel's coping mechanisms during wartime and the ability of companies and employees to continue operating under uncertainty. He noted that flexibility, initiative, and the ability to improvise may give the local industry an advantage during periods of rapid technological change.

In Ten Years, Your Bank Choice Will Matter Even More

One of the conference participants was Jacqueline Reses, co-founder, chair, and CEO of American Lead Bank. Reses, who previously held senior positions at Yahoo and Square, spoke with Danny Peled of Stardom Ventures, host of the podcast while you were working, about changes in the financial sector and the impact of artificial intelligence on banking.

During the conversation, Reses was asked whether in a decade, when technology enables automated financial operations, consumers will still care which bank holds their money.

Her answer was definitive: in ten years, people will care even more about which bank they leave their money in and knowing they have someone to call when things get complicated.

She stated that precisely as financial services become more digital and automated, trust in the institution holding the funds may become an even more significant consideration.

Reses also touched on her connection to Israel. I came here to support Israel. I love Israel, she said. When asked about investment avenues, she highlighted the S&P 500 index as an option she views favorably.

The Israeli Opportunity Alongside Question Marks

JOURNEY conference, held since 1997, took place this year under the banner Into the Wild, against the backdrop of rapid changes sweeping the global technology industry.

Discussions at the conference illustrated one of the primary challenges facing technology companies today: how to continue growing in a world where artificial intelligence can perform tasks that previously required human labor, and how to deal with the consequences of this shift on the labor market.

For Israeli high-tech, which has recently faced the consequences of war and economic uncertainty, this represents another challenge—alongside an opportunity to integrate into new fields. The question is which companies will successfully translate their technological capabilities into products and services relevant in a world where artificial intelligence alters all the rules of the game.