AIG Israel workers' committee declare labour dispute over AI

Following nearly a year of stalled negotiations, a labour dispute has been declared at AIG Israel over management’s unilateral pilot to deploy artificial intelligence tools that simulate worker tasks. With over 570 service and sales roles at risk of potential displacement, the Histadrut is demanding that AI integration and automated management be strictly regulated through collective bargaining to ensure a human-centric, just digital transition.

At the beginning of this week, the workers’ committee of AIG have officially declared a labour dispute at AIG Israel – one of the country’s prominent major insurers and a subsidiary of the American International Group, a global leader in insurance and financial services. The decision comes after nearly a year of stalled negotiations over the renewal of the collective agreement.

At the core of this dispute is management’s unilateral push to deploy artificial intelligence systems designed to replicate worker tasks, posing a direct threat to employment stability. The workers’ stance is clear: technological advancement must never come at the expense of human dignity and job security. The integration of any AI tools and automation technologies must be formally regulated through a collective bargaining agreement.

According to the AIG Israel Workers’ Committee:

“We did everything we could to avoid this moment, but unfortunately, we were left with no choice. For a very long time, we tried to reach agreements with management, but the gap between what management is willing to offer and a collective agreement that provides AIG employees with market standards remains substantial.”

Mitigating risk for service and sales professionals

The stakes are particularly high for AIG Israel’s workforce. According to Calcalist , out of 852 employees registered in 2025, over 570 work in customer service and sales call centres, the precise roles currently targeted by AIG management’s AI pilot programs. Without clear, legally binding safeguards established through organised labour, these workers face unprecedented vulnerability to displacement by automated algorithms.

Following the declaration of the dispute, a mandatory 15-day cooling-off period began on Sunday, meaning the workers committee could proceed with further action within 10 days if necessary.

Standing strong for a just digital transition

The dispute at AIG Israel reflects a critical global labour challenge in Israel and overseas. How do companies, workers and workers’ committees address the impact of AI tools on working conditions and employment? By demanding that AI be used to augment human skills and improve service quality rather than to displace workers or increase workplace surveillance. By embedding rules on algorithmic management, continuous human oversight, and mandatory retraining into collective agreements, we can ensure that technological shifts deliver shared prosperity rather than arbitrary job cuts.

The Histadrut remains steadfast in our commitment to defend every worker navigating the digital transformation. By demanding transparent, worker-led frameworks for AI integration, we will continue to ensure that innovation and workers’ rights advance together.

Information for this article was taken from Calcalist