OECD Digital Economy and Society Outlook 2026

Executive Summary

From rapid advances in artificial intelligence (AI) compute that are reshaping the technology frontier to screen-time dynamics that are affecting the academic performance of children, digital transformation has evolved from a simple question of Internet access into a much more complex phenomenon. The OECD Digital Economy and Society Outlook 2026 helps chart the path ahead by providing evidence-based analysis on today’s key technological trends and their impacts. It examines new directions in digital priorities, policies and governance, and explores key technologies that underpin digital transformation, as well as their economic and societal effects. A Statistical Annex completes the publication.

Key findings

Technology-neutral policymaking is giving way to technology-specific digital policies

The growing complexity of digital transformation is reflected in a more diverse policy environment. “Artificial intelligence” was the most cited technology in digital policies in 2025, while quantum technologies, semiconductors and satellites have become more prominent since 2023. Digital government has consistently been the top digital policy priority over the past decade, but cybersecurity and technology development grew in importance in 2025. The share of OECD Member countries and partner economies that assign primary responsibility for developing their national digital strategy to dedicated digital ministries reached 60% in 2025, up from 24% in 2016.

Digital infrastructure powers today’s economies and societies

As digital technologies become more pervasive and capable, demand for high-quality, resilient and affordable connectivity is increasing. Gigabit subscriptions as a share of total fixed broadband across the OECD grew sixfold between 2020 and 2025, and fibre’s share rose from 31% to 51%. Prices for mobile voice and data services fell by more than half over the past decade, and prices for fixed broadband services by 25-37%. However, as recently as Q2 2026, people in cities experienced broadband speeds 42% higher than those in rural areas across the OECD. In response to growing complexities in the connectivity ecosystem, two-thirds of OECD communication regulators’ mandates have expanded over the past three years to address wider issues, including AI, cloud computing and online platforms.

AI compute is becoming a strategic asset

AI development and deployment are placing new demands on digital infrastructure. Alongside skills, data and algorithms, AI progress depends on computing and investment in AI compute is booming. Governments are announcing major commitments and venture capital investment for AI firms in information technology infrastructure and hosting rose from USD 54.5 billion in 2024 to USD 123.9 billion in 2025. International co-operation and cross-sectoral partnerships are critical to scaling AI compute efficiently.

Information and communication technologies (ICTs) fuel global growth, but uptake varies and interdependencies have emerged

Technological developments are unfolding alongside continued growth in the ICT sector and wider adoption of digital technologies. The ICT sector is estimated to have grown at 5% in 2025 across the OECD although value creation and sourcing remain highly concentrated, reflecting both efficiency gains and cross-border interdependencies. More than half of all firms and over 80% of large firms used cloud computing in 2025, while AI uptake reached 20% for all firms and 52% for large firms. The integration of complementary digital technologies remains limited, with the combined use of AI, cloud computing and big data analytics concentrated in large firms and knowledge-intensive sectors. Among individuals, generative AI use reached 37% in 2025, with higher uptake among younger, highly educated and higher-income groups.

Innovation in privacy-enhancing technologies (PETs) has surged in recent years

As digital technologies become more widely adopted, protecting privacy while enabling access to and use of data is increasingly important. Innovation in PETs has risen significantly since 2015, closely following the enactment and updating of comprehensive data protection regulations around the world. Generative AI and blockchain are driving the current wave of PET-related innovation, due in large part to the need to train models on sensitive data while preserving privacy. However, deployment is limited by persistent and interrelated barriers. Countries are responding with measures to support PET adoption, including via regulatory guidance, regulatory sandboxes, and research and development support.

Boys videogame more than girls, with intensive use associated with lower academic performance

Digital technologies not only underpin innovation, but also leisure, and children across the OECD are keen gamers. In 2025, 54% of 15-year-olds in the OECD played video games moderately on weekdays (up to three hours) and 26% gamed intensively (more than three hours). Across the OECD in 2025, boys from disadvantaged backgrounds spent 21 hours gaming per week (13 hours for girls) versus 17 hours for boys from advantaged backgrounds (9 hours for girls). Video gaming can support cognitive skills, creativity and well-being, but intensive gaming is associated with lower academic performance, particularly for girls and students from advantaged backgrounds. Online safety, privacy, and consumer and financial protection policies and approaches play a central role in safeguarding child well-being.

Older adults continue to lag in the uptake of digital technologies, particularly the most advanced

For older adults, digital technologies offer leisure opportunities and can support independence and quality of life, but adoption is lower. In 2025, 68% of older adults used online public services (versus 81% overall), with similar gaps in e-commerce and online banking. Older adults also trail in AI adoption (14% versus 68% for 16–24-year-olds). Among older adults in 2025, 43% perceived no need for AI – almost double the rate of 16–24-year-olds (25%). Furthermore, 12% lacked the necessary skills and 9% were unaware of the technology. Policy can help older adults reap more benefits from digital technologies, including AI, by focusing on three core areas: boosting skills, raising awareness of AI opportunities, and improving the accessibility of online government services.