Digital Government Outlook 2026: Iceland
Table of contents
This country note presents an overview of the digital government landscape in Iceland drawing on the results of the 2025 OECD Digital Government Index (DGI) and the 2025 OECD OURdata Index. The note outlines key policy developments in the country observed during the assessment period. It aims to inform policy dialogue and support Iceland in advancing a whole-of-government approach to digital transformation in the public sector.
In the 2025 edition of the OECD Digital Government Index, Iceland attained a score of 0.70, equal to the OECD average. This represents a 0.06 increase since 2023 (Figure 1).
Iceland recorded higher scores in User-Driven (0.85), Digital by Design (0.79), Proactiveness (0.73) and Government as a Platform (0.73), compared with OECD averages of 0.71, 0.75, 0.67 and 0.71, respectively. These results show that Iceland has advanced in placing user needs at the centre of service design and in developing proactive approaches to service delivery.
Iceland scored below the OECD average in Data-driven Public Sector (0.61 vs 0.74) and Open by Default (0.50 vs 0.59). This suggests that Iceland still has room for improvement in leveraging data as a strategic asset and in promoting the openness and transparency of government data and processes.
In the 2025 edition of the OECD OURdata Index, Iceland attained a score of 0.35, below the OECD average of 0.53 (Figure 2). This represents a 0.14 increase since 2023.
Iceland scored below the OECD average across all three pillars: 0.42 in Data availability, 0.46 in Data accessibility and 0.17 in Government support for data re-use, compared with OECD averages of 0.53, 0.67 and 0.40, respectively. These results suggest that Iceland faces challenges across all dimensions of open government data provision.
The lowest score was recorded in Government support for data re-use (0.17). This means that Iceland has significant room for improvement in developing mechanisms to actively promote the re-use of government data and generate public value from open data initiatives.
Iceland’s digital government governance is led by the Ministry of Finance and Economic Affairs through its Digital Iceland office, under the Digital Strategy (2021). Co-ordination is ensured through the Consultation Committee on Digital Development in the Public Sector.
Systematic mechanisms to measure user needs throughout the service lifecycle have been developed in Iceland. The Devland project management framework requires mandatory automated testing, peer code reviews, and integration of security and accessibility checks into sprint workflows. A "Definition of Done" checklist ensures architecture review, security audit, and analytics setup before public release. Post-launch monitoring includes audit logging and anonymous analytics.
To support the assessment of digital projects, Iceland has developed a common evaluation toolkit applied across the public sector. Operated by Digital Iceland, the toolkit includes a benefits calculator enabling agencies to estimate cost and time savings from digitising processes. The model measures changes in transaction time, travel distance, and processing costs, providing a consistent basis for prioritising digital transformation initiatives.
While Iceland performs well in Data accessibility and availability, its data governance framework could be strengthened. A data quality framework, formal data leadership requirements, and systematic assessments of data inventory quality are not yet in place. Establishing these foundations could enhance the strategic management of government data assets.
Iceland's AI framework also presents opportunities for development. Transparency instruments and dedicated oversight mechanisms for AI use in public decision-making are not yet in place, and the scope of AI advisory bodies remains limited. Strengthening these capabilities could support more accountable and transparent AI adoption in government.
The OECD Digital Government Outlook (DGO) provides a comprehensive assessment of digital government policies across OECD Members and accession candidate countries. It draws on the results of the 2025 OECD Digital Government Index (DGI) and the 2025 OECD Open, Useful and Re-usable Data (OURdata) Index to evaluate progress and identify persistent gaps in digital transformation across the public sector.
The DGI assesses the enabling foundations for digital transformation across six dimensions: Digital by Design, Data-driven Public Sector, Government as a Platform, Open by Default, User-Driven and Proactiveness. Rather than measuring the digitalisation of specific services, the DGI focuses on the strategies, policy levers, implementation practices and monitoring mechanisms that enable coherent, whole-of-government digital transformation.
The OURdata Index benchmarks the robustness of open government data policies across three pillars: data availability, data accessibility and government support for data re-use. It supports policymakers in monitoring the design and implementation of national open government data policies.
Both indices were developed with OECD Member countries through the OECD Working Party of Senior Digital Government Officials (E-Leaders) and approved by the OECD Public Governance Committee.
Figure 1: The 2025 DGI OECD average does not include Germany and the United States. 2025 data cover the period from 1 January 2023 to 31 December 2024. The 2023 OECD average does not include Germany, Greece, Slovakia, Switzerland and the United States. 2023 data cover the period from 1 January 2021 to 31 October 2022. The composite score is the unweighted average of the six-dimension scores.
Figure 2: The 2025 and 2023 OURdata Index OECD average does not include Denmark, Hungary and the United States. 2025 data cover the period from 1 January 2023 to 31 December 2024. 2023 data cover the period from 1 January 2020 to 31 December 2021. The composite score is the unweighted average of the three-pillar scores.
This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Member countries of the OECD.
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The full book is available in English: OECD (2026), Digital Government Outlook 2026: From Foundations to Transformational Impact, OECD Publishing, Paris, https://doi.org/10.1787/0496b2bc-en.
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