Israel Advances Arrow 4 Interceptor to Serial Production With AI Capabilities

Business Insider reported that Israel is developing two next-generation interceptors for its Arrow missile defense system. Arrow 4 is nearing serial production and will replace the Arrow 2 interceptor that entered service in 2000. Moshe Patel, director and general manager of the Israeli Missile Defense Organization, told Business Insider that the program is in a very advanced stage of development.

He said the Arrow 4 interceptor will soon enter serial production capability and that the process has already begun. The interceptor will be produced in both Israel and the United States and will include artificial intelligence technology. The Arrow system is a surface-to-air missile defense jointly produced by Israel Aerospace Industries and Boeing.

Arrow 3, which can engage targets in space, has been operational since 2017. Arrow 4 will provide a modernized version of the older Arrow 2 with improved shoot-look-shoot capability. Business Insider reported that Israel is also developing an Arrow 5 interceptor that will incorporate AI algorithms and capabilities.

Patel said the project originated from Israel Aerospace Industries research and that Israel plans to fund further development from its own budget while sharing related information with the U.S. Missile Defense Agency. Arrow 5 is intended to add an additional defensive layer rather than replace Arrow 3.

Patel said the plan is that it will ease future battle requirements. Israeli officials told Business Insider that the Arrow system achieved at least a 90 percent success rate against ballistic missiles it engaged during clashes in June 2025 and earlier in the year.

Germany remains the only foreign buyer of Arrow systems, though Patel said Israel has received significant interest from other countries.