[108537] Israeli High-Tech: Employment costs rise, acquisitions continue, and a surge in demand for AI experts

Key Trends in Israeli High-Tech: July 2, 2026

Rising costs in the local labor market

According to reports by Geektime and Technology - The Leaker, for the first time, a situation has been recorded where "Israeli developers are more expensive to employ than American developers." This figure marks a significant shift in the salary landscape and the demand for local technological manpower, where companies are required to invest more resources than in the past.

A wave of acquisitions and exits

Mergers and acquisitions (M&A) activity continues at full force. Technology - The Leaker reports that the company ServiceNow has acquired a two-year-old Israeli startup for tens of millions of dollars. At the same time, it was reported on the same channel that the chip giant Qualcomm has completed the acquisition of an Israeli cyber company in a deal estimated at over $100 million.

The AI revolution in the labor market

According to data from Technology Updates (relying on Fiverr's Business Trends Index), a dramatic increase of 2,267% has been recorded in demand in Israel for "Claude Code" experts, which constitutes "the new profession that is exploding." This figure is significantly higher than the global growth in the field, which stands at 938%. Additionally, there is a visible 278% leap in demand for AI services in the fields of video and animation.

Innovation in system management

Beyond salary and acquisition data, Technology - The Leaker highlights the growth of the "autonomous SRE revolution," which is focused on technologies that enable the prevention of malfunctions in complex computing systems even before the end-user experiences any disruption in service.