For the first time: Employees in Israel declare a labor dispute over fears of being replaced by AI
The Histadrut and the AIG Israel workers' committee have declared a labor dispute over the implementation of an AI-based voice agent. Employees fear mass layoffs, as over 550 staff members could be replaced by the new technology.
The Histadrut and the workers' committee of the insurance company AIG Israel have declared a labor dispute, with a new pilot project by the company's management to implement an AI-based voice agent at the center of the disagreement. According to workers' representatives, the voice agent is designed to replicate the activities of service and sales representatives one-to-one, raising real concerns about widespread job losses. Out of approximately 850 employees, more than 550 work in service and sales and could be replaced by various AI tools.
The workers' committee claims that instead of using AI as a support tool for daily tasks, management is promoting a unilateral step that amounts to pure "outsourcing." Therefore, the committee demands that any implementation of automation and AI tools be explicitly regulated as an integral part of the new collective agreement.
A dispute after excellent financial results
The declaration comes after nearly a year of stalled negotiations for the renewal of the collective agreement. The committee points out that the company posted excellent financial results in the first quarter of 2026, while the global AIG corporation concluded the past year with a net profit of about 3.1 billion dollars. A 15-day cooling-off period has now begun, after which the committee and the Histadrut may take protest measures, including a full strike.
AIG stated:
"We regret the decision of the workers' committee and the Histadrut to declare a labor dispute while serious negotiations are underway, during which the company presented worthy proposals regarding salary and employment conditions. AIG believes in innovation and the implementation of AI technologies as part of its business development and service improvement. The implementation of these tools will be done in a responsible and considered manner, while engaging in dialogue with workers' representatives in accordance with the law. The company will continue to work towards reaching a worthy and balanced agreement for the benefit of the employees and the company."
