Alessandro Maravalle
OECD
Alberto Gonzalez Pandiella
OECD
OECD Economic Surveys: Mexico 2026
Abstract
Mexico’s digital transformation offers major opportunities to boost productivity, employment, and improve public service delivery. The new Agency for Digital Transformation and Telecommunications can accelerate reforms to boost digitalisation. To fully realise the benefits of digitalisation, Mexico should address persistent challenges, including high concentration in the mobile telecommunications market, low digital adoption among firms, particularly SMEs, cybersecurity vulnerabilities, and poor digital skills. Ensuring sound pro-competition regulations in the telecommunications market is critical to advance digitalisation. Aligning the spectrum fee scheme to international best practices, streamlining rights of way, standardising local regulation and promoting infrastructure sharing can foster investment and boost connectivity, including in underserved areas. Scaling up digital government can reduce administrative burdens, while a stronger focus on digital skills is critical to align the workforce with evolving labour market demands. Establishing a robust AI governance framework could promote investment and help Mexico fully capitalise on the opportunities offered by artificial intelligence and advanced computing technologies.
Mexico is undergoing a digital transformation that could have significant implications for economic growth, employment, and living standards. Digitalisation holds the potential to enhance aggregate productivity and raise wages, an especially critical opportunity given Mexico’s structurally low productivity level (Figure 4.1, Panel A). Productivity growth has not only lagged the OECD average but has also diverged from that of regional peers and average OECD (Figure 4.1, Panel B). With population aging (CONAPO, 2023[1]) expected to increasingly constrain the country’s labour force expansion, the main driver of past growth (Figure 4.2), enhancing productivity is becoming ever more urgent.
Previous OECD Economic Surveys have analysed key factors influencing productivity, including infrastructure (OECD, 2024[2]), business regulations (OECD, 2024[2]), innovation (OECD, 2019), urban development (OECD, 2024[2]) and financial inclusion (OECD, 2022[3]). Other chapters in this Survey examine additional drivers such as trade, rule of law, corruption and crime, competition (Chapter 1), skills, and informality (Chapter 2). This chapter focuses on digitalisation offering a comprehensive evaluation of Mexico’s digital transformation landscape. Section 4.2 assesses the current state and key challenges in areas such as digital infrastructure, technology usage and affordability, and the digital divide. It reviews past governance frameworks and their outcomes, and evaluates the new approach adopted by the current administration. It also highlights disparities in states’ capacity to benefit from digitalisation, warning that without targeted policy action, these gaps may continue to widen.
Digital technologies may increase productivity by reshaping the structure of the economy and transforming products, services, processes, marketing and other operational activities. Digital platforms and electronic payments enable firms to expand their customer base, access new markets, and improve business models. Mobile applications integrated into marketing strategies allow firms to better understand and engage with customers, improving service personalisation and customer satisfaction. Adoption of IT systems, artificial intelligence, and robotics facilitates automation, reduce operational costs, and boosts efficiency and profitability. Cloud computing technologies support real-time monitoring, optimising manufacturing production processes with greater precision and speed.
While the digital transformation offers significant opportunities, it also brings critical regulatory challenges that must be addressed. Key risks include data protection and cybersecurity, particularly as reliance on cloud computing and internet-based services increases, heightening the potential for data breaches and privacy violations. Ensuring robust frameworks for personal data protection is essential. Effective regulation of digital markets is also needed to prevent platform providers from gaining excessive market power, including practices like exploiting proprietary data or engaging in price discrimination through customer profiling. Additionally, guaranteeing the independence and impartiality of the telecommunication regulator is vital for promoting competition, driving innovation and attracting investment. These issues, along with best practice examples, are explored in Section 4.3.
Mexico needs advancing digital government to streamline public service delivery, reduce bureaucratic costs and delays, and enhance transparency and accountability. These improvements can help curb corruption, build public trust, and boost the efficiency of tax collection and administration. Section 4.4 reviews recent policy efforts in digital government and explores solutions to key challenges. They include expanding digital service coverage through universal digital identity, mandating interoperability across systems, improving coordination across government levels, and strengthening cybersecurity. To ensure digital government contributes to equitable service provision, it is crucial to ensure digital accessibility of public services and provide adequate support to local governments.
Addressing skills shortages is essential to advancing Mexico’s digital transformation. While the lack of skilled talent is a major barrier, the rapid adoption of digital technologies also risks disrupting existing business models and causing job displacement, particularly in sectors reliant on routine tasks. Section 4.5 explores both the risks and opportunities digitalisation presents for the labour market. To harness its benefits and mitigate adverse effects, Mexico must strengthen its education system to deliver foundational and advanced skills, and promote retraining and upskilling initiatives aligned with labour market needs. These efforts are crucial to prevent labour market polarisation, support high-quality job creation, and foster inclusive growth.
Emerging technologies, particularly artificial intelligence (AI), could play a pivotal role in Mexico’s digital future. From streamlining manufacturing processes and strengthening financial risk management to revolutionizing healthcare diagnostics and personalizing education through adaptive learning, AI holds immense promise for boosting productivity across sectors. However, as outlined in Section 4.6, despite existing initiatives (OECD AI Policy Observatory, 2025[4]) Mexico faces significant hurdles in boosting AI adoption, including the need for increased investment and a robust talent pipeline. The section emphasises the urgency of establishing a national AI strategy and enacting targeted regulations aligned with global standards to ensure that innovation progresses responsibly, safeguarding privacy, security, and transparency. Mexico’s adherence to the OECD AI Principles and its participation in the Global Partnership on AI provide a strong foundation for these efforts.
Note: In Panel A, GDP per hour worked is measured as US dollars per hour, PPP converted, constant prices 2020.
Source: OECD Productivity (database).
Contributions to annual GDP growth, % change
Source: OECD Productivity (database).
4.2.1. Connectivity gaps remain significant
A robust digital infrastructure is fundamental to the development of a thriving digital economy. High-speed broadband, advanced 5G networks, and reliable electricity grids are essential enablers of digital transformation that facilitates business innovation, supports participation in the digital economy, and enhances the delivery of digital services to citizens.
Mexico has made progress in recent years in expanding and improving its digital infrastructure, leading to an increase in broadband accessibility. In providing access to digital technologies, Mexico’s performance is comparable to that of its regional peers, although it still lags behind the OECD average (Figure 4.3). Average broadband speed and 5G network coverage remain below OECD standards. The average broadband speed reaches 47 Mbps, significantly lower than the OECD average of 120.8 Mbps. Similarly, 5G coverage stands at 52%, a notable improvement from 18.8% in 2022, yet still falls short of the OECD average of 76%. This hinders the broader adoption of data-intensive digital technologies such as cloud computing, digital communications, online transactions, and machine-to-machine applications. These technologies are increasingly vital across various sectors, including education, retail and agriculture, and are essential for boosting innovation and productivity. Mexico also needs expanding its mobile telecommunications infrastructure, as approximately 15% of municipalities, home to 2.1% of the population, lack any passive infrastructure provider (e.g., towers), while 36% have only one, affecting another 8.1% of the population (IFT, 2024[5]). In its 2026 budget proposal, the Mexican government allocated approximately USD 700 million to the Mexican Space Agency to support satellite projects that include also the expansion of connectivity in regions where terrestrial infrastructure is not feasible.
Note: LAC is a simple average of Chile, Colombia, Costa Rica and Brazil.
Source: OECD Going for Digital (database).
Investing in digital infrastructure is essential not only to expand and improve connectivity, but also to accommodate the growing volume of internet data and to modernise existing systems for integration with high-speed, data-intensive technologies. These investments are expected to be substantial in Mexico, as in other Latin American countries (CET.LA, 2025[6]). Facilitating such investment will require an enabling regulatory environment in both the telecommunications and digital markets (see Section 4.3). Adequate regulation can help attract private investment, ensure fair competition, and support the deployment of next-generation infrastructure.
Further investment is also needed to strengthen Mexico’s advanced digital infrastructure. While installed data centre capacity is growing, currently at 235 MW, with an additional 70MW planned, it remains well below major global players such as the United States (53 GW), China (31.2 GW), the European Union (11.9 GW), India (3.6 GW) and Brazil (590 MW), the largest in Latin American. Moreover, none of the world’s top 500 supercomputers is located in Mexico.
4.2.2. The use of digital technologies is rising, but from a low base
The use of digital technologies is increasing in Mexico, supported by improvements in digital infrastructure coverage. With 12 million of additional internet users over the period 2021-2024 (+13%) (INEGI, 2024[7]), internet penetration among individuals aged 16-74 reached 84.5%, around 7 percentage points higher than in 2021, yet still behind most OECD countries and regional peers such as Chile, Costa Rica and Brazil.
Approximately 20 million Mexicans (nearly 16% of the population) still do not use the internet. This exclusion is more severe in rural areas, where 31% remain offline, compared to 13% in urban areas. Key barriers include lack of digital skills (9.1%), limited interest or perceived relevance (3%), infrastructure gaps (2%), and economic constraints (2%). To uphold internet access as a constitutional right, targeted policy actions are needed to close these gaps. Priorities include enhancing digital skills (Section 4.5), raising awareness of internet benefits, expanding infrastructure, and reducing access costs.
Achieving widespread diffusion and effective use of digital technologies is a critical pillar of digital transformation. While many Mexican internet users engage in online learning, information searches and communication, activities like e-commerce and e-banking are growing from a low base (Figure 4.4), potentially due to concerns around security and trust (see section 4.4.3) and a low level of financial inclusion, as analysed in the 2022 Economic Survey of Mexico. Engagement with online government services remains limited, also in international comparison (Figure 4.5), and has declined (INEGI, 2024[7]), highlighting the need for stronger public sector efforts to expand digital service delivery (Section 4.4).
Internet users by usage, % of internet users
Source: INEGI Encuesta Nacional sobre Disponibilidad y Uso de Tecnologías de la Información en los Hogares (ENDUTIH) (database).
Use of internet, % of internet users, 2024 or latest
Source: OECD Going Digital Toolkit (database).
Micro, small, and medium-sized enterprises (MSMEs) lag larger firms in the uptake of digital tools, and this gap widens as technologies become more sophisticated (Figure 4.6). Internationally, Mexican firms are below the OECD average in having a web presence (Figure 4.7) or purchasing cloud services (see section 4.6), though they outperform the OECD average in e-commerce adoption. Digitalisation presents a powerful opportunity to boost aggregate productivity by narrowing the digital adoption gap. By embracing digital technologies, MSMEs can enhance operational efficiency, access new markets, integrate into digital value chains. Survey data confirms that firms using internet report higher productivity through increased sales and reduced costs (IFT, 2023[8]). Across all firm sizes, those using digital technologies also show higher wages and profit per employee (Figure 4.8).
Given that MSMEs contribute an estimated 52% of GDP and account for over 70% of employment, improving their digital capabilities is critical to Mexico’s broader economic performance. However, budget constraints and limited awareness of digital benefits (Movistar, 2023[9]) remain key barriers. The rapid expansion of Fintechs offers a promising avenue to support SME digitalisation (Finnovista, 2025[10]), though the sector remains relatively small and most new credit initiatives focus on consumer credit. To accelerate SME digitalisation, Mexico could scale and refine existing government programs, as discussed in section 4.6.
Firms using a given digital technology, % firms within a size category, 2024
Note: Firms are classified as small (11–50 employees), medium (51–250 employees), or large (251+ employees).
Source: INEGI Censos Económicos 2024 (database).
Firms using e-commerce and having a website, % firms within a size category, 2024
Note: Businesses are classified as small (11–50 employees), medium (51–250 employees), or large (251+ employees).
Source: INEGI, Censos Económicos 2024 (database); and OECD Going for Digital (database).
Note: Businesses are classified as micro (0-10 employees), small (11–50 employees), medium (51–250 employees), or large (251+ employees).
Source: INEGI Censos Económicos 2024 (database).
Affordable telecommunications are a key enabler of digital transformation, directly influencing the ability of individuals and businesses to access and benefit from digital technologies. Broadband services in Mexico have become increasingly affordable in recent years, particularly in the mobile segment. Between 2018 and 2024, the price of mobile phone services declined by 11% in nominal terms and 46% in real terms, supported by the 2013 telecommunications reform (OECD, 2025[11]). In contrast, fixed-line telephone service prices remained nominally unchanged but fell by 34% in real terms over the same period.
The differing price dynamics between mobile and fixed broadband had varied impacts on affordability for low-income households. For the bottom 40% of the population, mobile broadband is approximately one-fourth the cost of fixed broadband and is comparable to the OECD average. In contrast, in Mexico the cost of fixed broadband accounts for a share of low-income users that is five times higher than the OECD average , posing a significant barrier to inclusive digital access. (Figure 4.9).
Note: In both Panels, LAC is a simple average of Chile, Colombia, Costa Rica, Argentina, Brazil, and Peru.
Source: IDBB 2021.
Market concentration remains relatively high in Mexico’s telecommunications sector, particularly in the mobile segment. Enhancing competition and strengthening regulatory oversight could help further lower broadband prices and improve service quality. These goals fall under the mandate of the newly established telecommunications regulator and the forthcoming competition authority. Section 4.3 will examine the effectiveness of this new institutional setup and outline strategic actions to support their mandates.
4.2.3. Readiness to digitalisation is uneven across states and firms
Mexican states vary significantly in their readiness to embrace the digital transformation. Large gaps exist in infrastructure, internet penetration, access to digital tools and services, and digital skills (Figure 4.10). Leading states (e.g., Ciudad de Mexico, Nuevo Leon) score around five times higher than lagging states (e.g., Oaxaca, Guerrero) in digital development state indexes (Centro México Digital, 2024[12]).
Digital Development Index by state, 2024
Note: The chart shows the Digital Development Index together with the three pillars composing it: digital infrastructure, digitalisation of people and society, and innovation and technology adoption.
Source: (Centro México Digital, 2024[12]).
Long-standing structural inequalities, combined with Mexico’s geographical and cultural diversity, compounds digital divides. States with low digital capacity also tend to rank low on the Human Development Index (HDI), which reflect regional disparities in health, education, and living standards. If left unaddressed, digital gaps risk deepening existing social and economic inequalities. The uneven distribution of digital enablers, such as infrastructure, connectivity and skills, across regions risks further widening regional disparities and hindering inclusive development (Box 4.1).
Mexico faces persistent regional disparities, with limited evidence of economic convergence among its states. This is confirmed by a beta-convergence analysis (Barro and Sala--y-Martin, 1992), which assesses whether poorer states have been catching up with richer ones over the 2003–2022 period, conditional on their starting conditions. During this period, real GDP per capita grew sluggishly, averaging just 0.5% per year. In particular, the following model is estimated:
where is the growth rate of real GDP per capita between 2003 and 2022 of state i, is the initial level of real GDP per capita, is a constant and is the error term. is the parameter capturing convergence: a significantly negative β indicates that poorer states grew faster, consistent with convergence. Estimates reject the hypothesis of regional convergence (Table 4.1).
Note: lack of the symbol * implies lack of statistical significance at least at the 90% level. OLS stands for Ordinary least square. A spatially lagged dependent variable model (SAR) accounts for the possibility that growth in one state might depend on the growth rate of the neighbouring states. A spatially lagged errors model (SEM) accounts for systematic measurement errors due to the spatial correlation of the variables.
Source: Boumahdi (forthcoming).
Digitalisation in Mexico risks deepening rather than narrowing regional disparities. For digitalisation to drive convergence, lagging states would need to exhibit higher growth potential and digital readiness than leading ones. However, state-level indicators of economic growth potential and digital readiness show that wealthier states, primarily located in the North and Centre of the country, are significantly better positioned to benefit from digital transformation. In contrast, poorer states, mostly concentrated in the South-West, lag behind in both dimensions, suggesting that digitalisation is likely to amplify existing gaps (Figure 4.11).
Note: States are classified based on their position in the distribution of the average between digital readiness and growth potential indicators. Those in the lowest quartile are labelled “low”, the second lowest “intermediate low”, the second highest “intermediate high”, and the top quartile “high.”
Source: Boumahdi and Maravalle (forthcoming); and Centro México Digital.
4.2.4. The government is strengthening institutional capacity and strategic coordination for the digital transformation
Since January 2025, Mexico’s digital policy has been consolidated under a new authority, the Agency for Digital Transformation and Telecommunications (ADTT). Reporting directly to the executive, the ADTT is responsible for implementing the objectives of the National Development Plan in areas such as digital inclusion, e-government, ICT development, data governance and cybersecurity. The ADTT’s broad mandate encompasses oversight of telecommunications and broadcasting, infrastructure expansion, ensuring universal access, and improving spectrum allocation. It also designs regulations for digital markets, data protection and digital government, while promoting interoperability and administrative simplification. Recent legal reforms, including the Law to Eliminate Bureaucratic Procedures and the updated Telecommunications and Broadcasting (Ley en materia de Telecomunicaciones y Radiodifusión) consolidate key functions and provide a strong legal foundation for the ADTT to lead digital government and data policy across the federal public sector.
Backed by strong political support and a centralised mandate, key prerequisites for successfully promoting digitalisation across the country, the ADTT holds significant influence over Mexico’s digital agenda. International evidence shows that a successful digital transformation requires strong governance, a clear strategic vision, effective coordination across government levels, and integration of digitalisation into legal and institutional reforms to ensure long-term sustainability (OECD/CAF, 2023[13]) (Box 4.2).
Colombia has achieved a high level of digital readiness through its comprehensive Digital Government policy, which integrates digital strategy, e-government, cybersecurity, infrastructure sharing, and smart city initiatives. These efforts have significantly improved public sector management and the provision of public services to citizens. For example, a residence certificate that took six weeks and required in-person visit can now be obtained online in a few minutes. Colombia’s Digital Government policy is structured around two pillars. ICT for society enhances public access to data and promotes citizen participation in the design of policies and regulations. ICT for government strengthens institutional performance and public servants’ digital skills.
Iceland, since launching its national digital strategy in 2021, has made notable progress by adopting a whole-of-government approach. Key achievements include the Ísland.is portal, which centralises access to state services, and mobile-accessible digital certificates that allow secure verification of rights without physical documents.
A major challenge for ADTT lies in coordinating with Mexico’s state and local governments, which hold significant regulatory authority. While ADTT mandates are binding across public administration in some areas, gaps remain, particularly in areas like cybersecurity. Limited local capacity can hinder effective implementation, as discussed in Section 4.4.1 on administrative simplification. Expanding the ADTT’s mandate to include explicit coordination with local governments and strengthening intergovernmental coordination mechanisms will be essential to ensure consistent implementation of national digital policies and reinforce Mexico’s institutional capacity for digital transformation.
Despite its broad responsibilities and mid-term goals, ADTT’s resources remain modest, 3 billion Mexican pesos (160 USD million) in 2025 and 3.85 billion Mexican pesos (205 USD million) in 2026). This underscores the need for clear priorities and detailed action plans to ensure effective implementation. Mexico would benefit from a multiannual budgetary planning for its national digital strategy, including project investment plans. Such planning should also consider leveraging existing resources within federal agencies that collaborate with ADTT on joint initiatives. This would enable more accurate resource planning and budgeting. Drawing on international best practices, Mexico could adopt financial mechanisms that promote quality management in ICT projects. For example, Norway’s Ministry of Finance conducts annual budget assessments as part of a broader quality assurance framework. Mexico could also expand funding mechanisms to support local digital initiatives, fostering intergovernmental cooperation and more consistent implementation of national digital policies.
Effective regulation of telecommunications, digital markets, and data protection is critical to Mexico’s digital transformation. Strong institutions and sound policies can expand coverage, foster competition, attract investment and ensure a safe and trustworthy digital environment. This section reviews Mexico’ digital regulatory framework and highlights reforms needed to boost connectivity, improve market outcomes and protect users.
4.3.1. Safeguarding independent telecom regulation
In 2025, Mexico dissolved the independent Federal Telecommunications Institute (IFT) and transferred its functions to a new Telecommunications Regulatory Commission (CRT) under the Agency for Digital Transformation and Telecommunications (ADTT) to eliminate duplication, reduce costs, and improve public governance. Unlike the IFT, the CRT lacks autonomy: its members are appointed by the President and confirmed by a simple Senate majority. This reform raises concerns about impartiality and long-term regulatory certainty, which are essential for attracting investment in broadband and 5G.
Independent regulators are the norm across OECD countries (Figure 4.12) and are associated with greater investor confidence, stronger competition and more innovation. Mexico’s own experience with the independent IFT is one of significant progress, with mobile broadband subscriptions increasing by 93.9 million and prices falling by 69% to 85% between 2013 and 2023 (OECD, 2025[11]). OECD Best Practice Principles for the Governance of Regulators emphasise that a single, independent regulator should oversee the sector and have commensurate powers to carry out its role and operational distance from government. Weakening regulatory independence risks deterring investment in broadband and 5G, slowing connectivity improvements.
Share of all regulators with a given legal status, by sector
Note: The survey includes regulators from 44 countries, 37 OECD countries (United States excluded) and seven non-OECD countries (South Africa, Brazil, Bulgaria, Croatia, Malta, and Peru).
Source: (Van Langen et al., 2025[18])ECD 2023 GSR indicators survey.
Ensuring the true independence of Mexico’s telecommunications regulator is essential for safeguarding impartial decision-making and promoting fair market competition. To function effectively, such a regulator should be supported by a robust governance framework that ensures its effective operation, safeguards regulatory integrity, impartiality and independence, and enables it to fulfill its mandate (OECD, 2014[19]; OECD, 2021[20]). High levels of independence, from both the entities it regulates and the government, enhance trust in regulatory decisions, promote open market access, and prevent the abuse of dominant positions. This can be achieved through measures such as decoupling board members' mandates from the political cycle and strengthening the technical requirements for appointments, thereby insulating the regulator from political influence. Other options could include transforming the CRT into a self-governing body (órgano descentralizado), which would grant it greater autonomy than its current status as a deconcentrated entity (órgano desconcentrado).
Enhancing transparency in the appointment process of the members of the CRT is also critical. Mexico could draw on international best practices, such as those adopted in Colombia, where three out of four members of Colombia’s Communications Commission, part of the Communications Regulatory Commission, are selected through a public, merit-based competition. This process includes a widely publicised call for applications and a rigorous technical evaluation conducted by the National University.
The regulator should also be provided with adequate resources to fulfill its mandate. In particular, the CRT should be capable of monitoring and enforcing recent measures issued by the IFT to increase competition in communications markets. In the mobile services market, for example, these measures prevent the predominant operator from delivering locked terminal equipment, establishing mandatory or minimum contract terms for telecommunications services, bundling terminal equipment discounts with service provision, and using win-back strategies for 60 days after a user switches providers. In addition, these recent measures aim to facilitate the replicability of public rates offered by the predominant operator and strengthen the predominant operator’s obligations to provide information to the regulatory authority.
4.3.2. Safeguarding competitive neutrality and regulatory effectiveness
Two state owned enterprises (SOEs) play a significant role in Mexico’s telecom sector: Altán Redes, which holds a wholesale concession and exclusive rights over the 700Mhz spectrum band, key for 5G (Ebyte, 2024[21]; Xiang et al., 2021[22]); and Federal Electricity Commission (CFE), which provides retail services in underserved areas. While these entities can help extend coverage, their strong position also raises concerns about competitive neutrality, especially after CFE’s recent acquisition of a 23% stake in Altán.
Recent regulatory changes increase the risk of infringing competitive neutrality, a principle requiring that SOEs do not benefit from undue advantages over private competitors solely due to public ownership. The July 2025 Telecommunications and Broadcasting Law (Ley en Materia de Telecomunicaciones y Radiodifusión, articles 79, 127, and 130) allows SOEs to be assigned frequency for commercial use. This possibility raises doubts about the enforceability of the safeguards established by the former regulator to ensure a level playing field, particularly in relation to the Federal Electricity Commission (CFE). International best practice requires SOEs to compete on equal terms with private firms. Mexico should ensure strict separation between regulator and operator roles, enforce safeguards against conflicts of interest and strengthen transparency in SOE operations. Strengthening the autonomy of Mexico’s new telecommunications regulator, as discussed in section 4.3.1, is essential for maintaining this separation. Reforming the governance of the CFE in line with the OECD guidelines on corporate governance of State-Owned Enterprises can help reduce the risk of political interference, enhance transparency, and promote more efficient and accountable management.
Another pressing issue is the high level of regulatory barriers to competition in Mexico’s telecommunications sector, which exceed the OECD average (Figure 4.13). A central concern is the future of asymmetric regulation, a key tool for promoting competition by imposing stricter obligations on dominant firms while easing requirements for smaller players. Under Mexico’s 2025 telecom reform, responsibility for asymmetric regulation is split between the Telecommunications Regulatory Commission (CRT) and the National Antitrust Commission (CAN). The CAN will define the criteria to identify dominant firms, while the CRT will define how asymmetric measures are applied, monitored and enforced. Entrusting full responsibility for asymmetric regulation to the communications regulator is in line with best practice in most OECD countries. This regulatory tool has been instrumental in bridging the connectivity gap in rural areas, particularly by facilitating simplified concession procedures for community and indigenous networks.
Product Market Regulation (PMR) in e-communications sector, index, from 0 ("more competition friendly") to 6 ("less competition friendly"), 2023-2024
Note: LAC is a simple average of Chile, Colombia, Costa Rica, Brazil and Peru.
Source: OECD Product Market Regulation (PMR) (database).
4.3.3. Making spectrum more affordable
Spectrum fees in Mexico are among the highest in the OECD, mainly due to elevated annual charges. The total cost of most frequencies is almost twice the international median (GSMA, 2022[23]) (Figure 4.14), and contributes to persistent high market concentration (IFT, 2023[24]) (Figure 4.15), with one operator holding approximately 56 % of mobile broadband connections ( (IFT, 2024[25])). These costs are an important factor deterring new entrants, limiting the growth of operators other than the preponderant and slowing network expansion, especially in rural and underserved areas. The high cost of spectrum in Mexico stems from a dual-pricing scheme: an upfront auction fee combined with a high, administratively determined, annual fee. In practice, the annual fee accounts for 70% to 90% of the total spectrum cost, unlike the more common OECD model, where auctions determine the full payment amount (OECD, 2022[26]).
High spectrum cost adversely affects the viability of investments in mobile networks (GSMA, 2025[27]), leading to the return of frequencies one company returned all its spectrum holdings in Mexico, citing high spectrum costs as a key factor. Recent tenders have seen low participation, leaving several frequency blocks unassigned. As of 2025, Mexico’s total allocated spectrum stands at 562 MHz, well below the International Telecommunication Union’s recommended minimum of 1,280 MHz (CIU, 2025[28]).
Aligning spectrum pricing with international practice, shifting towards one-off auction fees and reducing annual administrative fees, would lower barriers to investment and support 4G and 5G deployment. Experience across the OECD has shown that transparent and well-designed spectrum licensing regimes provide legal certainty to foster long-term investment and innovation. Mexico’s elevated annual fees have also failed to maximise fiscal returns. Instead, they have discouraged full spectrum allocation, prompting some operators to return previously assigned frequencies. Between 2020 and 2023, the IFT estimated that Mexico lost approximately 13 billion pesos (around USD 700 million, or 0.04% of 2024 GDP) due to underutilised spectrum (IFT, 2023[24]), with further losses likely if current pricing policies persist. The most recent auction left the large majority of blocks unassigned (38 out of 41), signalling waning interest from operators and further potential losses. In contrast, the OECD emphasises the role of spectrum assignment as a tool to enhance economic and social welfare, not just fiscal revenue (OECD, 2022[26]).
Total cost of spectrum in Mexico by frequency, multiple of international median cost, 2021
Note: The international median is computed over 40 countries: Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, Colombia, Costa Rica, Croatia, Czech Republic, Denmark, Dominican Republic, Finland, France, Germany, Greece, Honduras, Hong Kong, Hungary, Iceland, Ireland, Luxembourg, Netherlands, Norway, Paraguay, Peru, Poland, Portugal, Romania, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Turkey, and United Kingdom.
Source: IFT 2023.
Note: A market is considered competitive for values of the HHI below 3000. Data for Mexico refers to 2024 and for all countries to 2021. LAC is the simple average of Chile, Colombia, Argentina, Brazil, and Peru.
Source: Inclusive Internet Index 2023 (database); and IDDB 2025 (Mexico only).
Reducing annual fees could encourage investment and help to expand infrastructure in underserved areas, and modernise existing networks. Studies indicate that aligning spectrum costs with global averages could extend 4G coverage to 5 million more Mexicans and increase data speeds by 30% (IFT, 2023[24]). While this policy shift may initially reduce fiscal revenues, it would significantly lower the risk of spectrum remaining unallocated or being returned, likely increasing revenues over time, as to generate a higher present discounted value of the future stream of fiscal revenues of as much as 45 billion Mexican pesos (IFT, 2023[24]).
To foster mobile deployment and bridge connectivity divides, Mexico could reduce spectrum costs by reforming its current fee structure. In line with OECD recommendations (OECD, 2017[29]), the country could rebalance the distribution between upfront auction fees and recurring annual charges to ensure that auctions reflect the fair market value of spectrum. This may involve eliminating or lowering annual fees in future auctions to consider the effects of these recurring fees on meeting policy objectives.
The June 2025 telecom reform introduces a mechanism to lower spectrum costs through discounts tied to infrastructure investment or expanded coverage in underserved areas. International experience shows that well-designed non-monetary spectrum access schemes can effectively accelerate 5G deployment (e.g., European Union, Colombia, Ecuador, Peru, Panama and Brazil). According to the Agency for Digital Transformation and Telecommunications, applying a 30% discount would have reduced the average spectrum cost below the international average by approximately 9.4% in 2023, 12.7% in 2024, and 15.6% in 2025. In the absence of such discounts, costs would have continued to exceed global benchmarks. It is therefore essential that the upcoming frequency auction regulation, due within six months of the establishment of the new Telecommunications Regulatory Authority, sets out clear, transparent conditions and provides adequate economic incentives to sufficiently reduce spectrum costs.
4.3.4. Streamlining local regulation for broadband infrastructure deployment and enhancing infrastructure sharing
Deployment of broadband infrastructure faces significant obstacles from local regulations, including restrictive zoning, cumbersome permitting and inconsistent rules across municipalities. At the municipal level, regulatory requirements for mobile networks installations often exceed what is technically or legally justified, increasing compliance costs and complexity (CONAMER, 2020[30]). For broadband networks, access to rights of way is a critical bottleneck that has slowed infrastructure expansion.
The deployment of telecommunication infrastructure in Mexico could accelerate by streamlining rights of way, standardising local procedures and promoting infrastructure sharing. One key barrier is the failure of local regulations to align with the General Law on Human Settlements, Land Use Planning, and Urban Development. Many local rules still restrict network deployment by limiting infrastructure to specific land uses, excluding residential areas, or imposing outright bans. To address these challenges, states and municipalities should update their regulations to remove such restrictions. Additionally, standardising procedures and requirements, particularly among neighbouring municipalities, and making them easily accessible online would reduce administrative burdens and accelerate infrastructure deployment.
The 2025 Telecom Reform grants the newly established Telecommunication Regulatory Commission (CRT) powers that might advance both infrastructure sharing and the streamlining of local regulation. First, the CRT is authorised to issue guidelines governing infrastructure sharing, which concessionaries must consider when drafting infrastructure sharing agreements. In cases of disagreement, the CRT is empowered to set technical and tariff conditions. Second, the CRT is mandated to develop a national regulatory framework for the deployment of telecommunication infrastructure, which will be mandatory across all levels of government. This is a welcome development, as access conditions to the preponderant operator’s infrastructure, including wholesale tariffs, have repeatedly been identified by the regulator and market participants as a constraint on effective competition (IFT, 2022[31]). It will be essential for the CRT to exercise these powers and monitor their effectiveness in promoting infrastructure sharing and standardising local regulation.
4.3.5. Strengthening regulation of digital markets
Digital platforms bring innovation and new opportunities but are prone to concentration and winner takes all dynamics. Mexico’s regulatory framework lags behind international peers in addressing these risks and regulating key emerging technologies such as digital platforms and artificial intelligence (AI) (Figure 4.16). In this context, the new telecom law, which expands the authority of the newly established Telecommunication Regulatory Commission to include digital platforms, represents a positive step.
Mexico’s digital market regulation could be strengthened by adopting asymmetric obligations and promoting interoperability, in line with international best practices (OECD, 2021[32]). Interoperability is widely used in the UK, EU, and US to enhance competition, especially in markets dominated by large online platforms (LOPs). Asymmetric regulation is often adopted by imposing obligations on LOPs, identified through clear criteria set by the competition authority. These obligations may apply to core platform services (as in the EU or UK) or to all LOPs activities (Germany) and even be tailored to individual platforms (as in the UK and Germany) allowing for some regulatory flexibility.
Mandating interoperability can reduce entry barriers, prevent exclusionary practices, and enhance competition, as recognised by many regulators (OFCOM, 2023[33]). It enables easier user access and supports multihoming (using multiple platforms) by lowering switching costs and preserving network effects. Historically, interoperability has driven innovation, such as in tech standards and financial protocols. Mexico could adopt various regulatory approaches to interoperability regulation (Box 4.3), drawing on global practices to ensure consistency, reduce compliance costs, and protect user experience. International collaboration among authorities can improve enforcement and guide reforms (OFCOM, 2023[33]). Effective regulation requires deep market understanding through studies, antitrust cases, and merger reviews. Engaging stakeholders and leveraging specialised units, like the UK’s Data, Technology and Analytics unit and Digital Markets Unit, can support implementation and compliance.
Regulation of emerging technologies, 2020
Note: The indicator refers to the simple mean of the average answer to the question: “In your country how adequately regulated are the emerging technologies and their applications (e.g. artificial intelligence, robotics, digital platforms)?” where 100 = “regulation is adequate”.
Source: NRI 2024.
In the United States, interoperable standards are proposed by a technical committee including company representatives, independent experts, and potential market entrants. The Federal Communications Commission approves proposals that promote market entry, are non-discriminatory, and do not reinforce existing market power. This flexible, industry-informed approach allows adaptation to evolving technologies and prohibit self-preferencing
In the European Union, the Digital Markets Act (DMA) mandates interoperability in specific contexts, particularly in markets with strong network effects and for number-independent interpersonal communication services (e.g., instant messaging and video calling apps).
In the United Kingdom, the Digital Markets Unit within the Competition and Markets Authority (CMA) has the authority to impose platform-specific codes of conduct and uses interoperability to address market power. The CMA’s investigations into online platforms and digital advertising identified limited interoperability as a contributing factor to entrenched dominance, prompting regulatory intervention.
4.3.6. Reinforcing the data regulation framework
Data regulation in digital markets pursues two main objectives: fostering competition and protecting privacy. As data is an essential input in digital markets, restricting access or granting it on discriminatory terms may constitute an anti-competitive practice, especially when done by firms with significant market power in segments with strong network effects and economies of scope. To reduce the advantage of the incumbent and foster competition, regulation should focus on how data is used, protected, and shared, rather than limiting data collection, ensuring that consumer interests are safeguarded. At the same time, the vast amounts of personal data generated online raise significant privacy concerns, as platforms often collect and use this data in ways that may may conflict with users’ privacy expectations.
In Mexico, competition authorities have already blocked a digital platform acquisition due to concerns over potential misuse of user data to stifle competition (COFECE, 2024[35]). To further mitigate such risks, Mexico could consider strengthening its regulatory framework, including enhancing data portability provisions. Data portability facilitates competition by allowing users to transfer their personal data between platforms, reducing switching costs and enabling market entry. Mexico could draw lessons from the European Union’s Data Act, which sets out rules for data access and use. Key aspects of this law include protections against abusive contractual terms and measures to simplify switching between data processing providers.
Mexico’s data protection framework underwent major changes following the November 2024 constitutional reform and the March 2025 Federal Law on the Protection of Personal Data. These reforms dissolved the National Institute for Transparency, Access to Information, and Protection of Personal Data (INAI), an autonomous body recognised internationally for its privacy oversight. Regulatory and supervisory powers have now been transferred to the Ministry of Anti-Corruption and Good Governance, under the executive branch, and to a new decentralised body, Transparency for the People (Transparencia para el Pueblo).
The reform raises questions on the robustness of citizens’ rights to access public information and the use of personal data by public institutions. The elimination of INAI is a significant institutional shift away from a specialised autonomous body towards a model in which key oversight functions are exercised within the executive branch. International standards, such as OECD Privacy Guidelines, recommend establishing privacy enforcement authorities “with the governance, resources and technical expertise necessary to exercise their powers effectively and to make decisions on an objective, impartial and consistent basis” (OECD, 2023[36]). In this context, centralising oversight within the executive branch can create risks about the perceived independence and transparency of data protection. To mitigate these risks, it will be important to strengthen the institutional safeguards, technical capacities, and resources of the new supervisory bodies to ensure effective and impartial enforcement.
Mexico’s legal framework for private-sector data use remains largely unchanged, maintaining ARCO rights (access, rectification, cancellation, and objection) and core principles like legality and consent. However, its effectiveness depends on clear and transparent secondary legislation, which is still pending. Frequent legal challenges have weakened enforcement and created uncertainty. To improve regulation, Mexico could develop a clear methodology for fines, impose stricter rules on dominant firms, ease compliance for smaller ones, and implement new regulation gradually through business dialogue. Establishing specialised courts for data-related disputes would enhance resolution. Expanding the law to cover areas like minors’ data, data portability, privacy by design, and impact assessments would further strengthen protection.
Mexico can strengthen its data protection framework by restricting platforms from unilaterally changing privacy policies. Many platforms lack transparency, with complex terms that most users (97% of young adults) accept without reading (COFECE, 2024[35]). Recent cases show platforms retroactively authorizing personal data use for AI training without opt-out options. While Mexican authorities did not intervene, Brazil and the U.S. have taken action against such practices.
Given the global nature of data flows, international cooperation is essential. Mexico could work through the Ibero-American Data Protection Network to align standards and stay updated with technological changes. Drawing on the EU’s General Data Protection Regulation, Mexico could adopt strong user rights like purpose limitation, informed consent, data access, and portability, ensuring clearer obligations for data processors.
Mexico’s data protection authority should also be empowered to oversee AI-related privacy risks. This includes implementing robust monitoring and evaluation mechanisms to ensure compliance with data protection regulations and enforcing corrective actions when necessary. Adopting a national AI regulation, as discussed in section 4.6, is a critical step toward defining the exact scope of institutional oversight. This framework would clarify how Mexico would balance the need for safeguarding citizens’ rights and promoting innovation by enabling responsible data access for AI firms.
Mexico lags the OECD average in digital government (Figure 4.17), defined as the strategic use of digital technologies to create public value by improving efficiency, policy effectiveness, and governance transparency (OECD, 2014[19]). The creation of the Agency for Digital Transformation and Telecommunications (ADTT) in 2025 (see Section 4.2.4) offers a strong foundation for advancing digital government. The agency’s strategy prioritises procedural simplification as a precursor to digitalisation. Looking ahead to 2030, ADTT aims to implement a national digital identity, simplify all federal, state, and municipal procedures, and digitise 80% of the most frequently used services. These efforts are expected to cut the number of procedures, requirements, and resolution times by 50%. These goals are ambitious given Mexico’s federal structure and the wide disparities in institutional capacity, technical resources and digital infrastructure across states, which may pose challenges for uniform implementation, as outlined in different sections throughout the chapter.
To advance digital government Mexico requires to simplify and digitalise administrative procedures, enhance intergovernmental coordination and interoperability, expand digital service coverage, advance its open data policy, and reinforce cybersecurity frameworks. Each of these areas will be examined in the following subsections, highlighting recent policy initiatives, identifying remaining challenges and proposing solutions.
OECD Digital Government Index, from 0 to 1 (or “highest level of digital maturity”), 2023
Note: LAC is a simple average of Chile, Colombia, Costa Rica and Brazil. The OECD Digital Government Index (DGI) assesses countries’ capacity to leverage data and technology for a human-centric, integrated digital transformation across government. It evaluates performance across six key dimensions: Digital by design, Data-driven public sector, Government as a platform, Open by default, User-driven, Proactiveness. The DGI is a composite score ranging from 0 to 1, with 1 indicating the highest level of digital government maturity.
Source: OECD Government at a Glance Indicators (database).
4.4.1. Digitalisation can reduce and simplify administrative procedures
The simplification and digitalisation of administrative procedures is a key goal of the National Agency for Digital Transformation and Telecommunications (ADTT). To achieve it, its strategy builds on the successful model of Mexico City’s Digital Agency for Public Innovation (ADIP), particularly its emphasis on centralising political and regulatory authority, and mandating interoperability and data sharing (Box 4.4). Recent legislative reforms have strengthened ADTT’s mandate, designating it as the lead agency for designing and overseeing digitalisation and simplification policies across all levels of government (federal, state, and local). This new legislation also establishes guiding principles for reducing bureaucratic complexity and improving access to public services. A constitutional amendment now requires all public sector entities to implement ADTT’s streamlining and digitalising policies. The inclusion of former ADIP staff within ADTT brings valuable expertise, further strengthening its capacity to deliver on its mandate. While these reforms mark significant progress, it remains essential to evaluate their implementation to ensure they effectively reduce administrative burdens for citizens and businesses (OECD, 2010[37]; OECD, 2020[38]). As of June 2025, the average time to complete federal administrative procedures decreased from 61 to 59 days, resulting in estimated savings of approximately 1.1 billion Mexican pesos (around 60 million USD) (ADTT, 2025[39]).
Mexico City achieved a rapid digital transformation between 2018 and 2023 by centralising its digital agenda under the Digital Agency for Public Innovation (Agencia Digital de Innovación Pública, ADIP). Established by law, ADIP operates with technical and managerial autonomy and leads efforts in administrative simplification, digital government, ICT governance, and data management. Key enablers of this digital transformation are:
Mandatory data sharing and interoperability, by which public institutions are required to share data with ADIP and ensure interoperability of their ICT systems.
ADIP’s regulatory and strategic authority on administrative simplification, secondary regulations, authorisation of ICT acquisition and development, coordination with other public bodies.
A cornerstone of the city’s digital strategy, Key CDMX digital file (llave CDMX expediente digital) is a unified platform that enables residents and businesses to access and manage procedures and services in Mexico City. Main achievements of the digital government transformation include increasing the number of digital procedures from 10 in 2018 to 197 today, covering 85% of uses by citizens; the deployment of 34 thousand free public internet points; the launch of an open data platform with access to 450 datasets; and the introduction of a digital platform for public procurement procedures (TANGUIS).
Digitalisation is a powerful enabler of more efficient, higher-quality, and broader public service delivery. However, it requires the standardisation and simplification of administrative procedures as a foundational step. By reducing costs, shortening delivery times, and enhancing service coverage, digitalisation can transform how citizens and businesses interact with government. To unlock these benefits, Mexico must first streamline its procedures. To this end, the ADTT will develop for each procedure national models to be gradually implemented across all levels of government. The design process will prioritise areas identified by states and begin with mapping existing procedures, followed by re-engineering to eliminate redundancies and align with digital requirements. Where necessary, regulatory or legislative adjustments will be made during a final normalization phase.
Mexico has made progress in using digital government to improve public service delivery for business activity through two key initiatives: the One-Stop Shop for Investors (VUIMX) and the upcoming Digital Window for Investors (VDNI), announced for November 2025. These efforts are timely, as the quality of business regulation continues to lag behind top-performing OECD countries (Figure 4.18), and improving it is a strategic priority for Mexico to enhance its investment climate (see chapter 1 in this survey).
Index, from 0 ("more competition friendly") to 6 ("less competition friendly"), 2023-2024
Note: LLCs=Limited Liability Companies and POEs=Personally-Owned Enterprises.
Source: OECD Product Market Regulation (database).
VUI MX offers foreign investors clear, detailed guidance and support for navigating the procedures required to establish operations in Mexico. VDNI will centralise, simplify, and digitise all administrative procedures related to the creation, construction, and operation of businesses. It is expected to reduce regulatory requirements from 466 to 51, and shorten the average time to start a business from 2.6 years to just one year. Implementation of the VDNI at the federal level can build on the experience of digital one-stop windows already operating in five Mexican states, developed in collaboration with the OECD.
Tailored support for SMEs, however, remains limited. Mexico could adopt best practices from countries like South Korea, Peru, and Uruguay, which offer digital tools to boost SME participation in trade (OECD, 2025[41]). In Canada the BizPal platform helps SMEs identify and obtain the necessary permits and licenses to start and operate a business. Similarly, the United Kingdom’s Primary Authority program offers regulatory advice to SMEs across various domains, including health, environmental standards, and trading regulations (OECD, 2020[42]).
4.4.2. Ensuring strong intergovernmental coordination and interoperability
Standardising administrative processes across jurisdictions is essential for achieving simplification and digitalisation. In turn it requires fostering effective coordination among federal, state, and municipal governments and ensuring IT system interoperability.
As highlighted in the 2024 Economic Survey of Mexico, coordinating implementation across local governments remains a major hurdle to streamlining public administration and regulation. While Mexico’s federal structure allows for local flexibility, it has led to a highly fragmented regulatory landscape, with inconsistent requirements across states and municipalities. This complexity places a heavy burden on businesses, 40% cite regulatory compliance time as a major obstacle, with figures reaching 80% in some states. This fragmentation hampers productivity, especially for SMEs, and fosters corruption through discretionary rule enforcement. Only 3% of local procedures are digitised, underscoring the urgent need for digital government reform.
Mexico’s current reform agenda aims to address these issues through the introduction of binding national models, interoperable systems, and digital files. Implementation will be led by local agencies, coordinated by the ADTT, which may provide technical support. Given the scale of the reform, rollout will be gradual, extending over several years. Success will depend on ensuring adequate human and financial resources at the local level and strengthening the skills of local staff. To support effective implementation, Mexico should invest in capacity-building programmes and secure sufficient budgetary resources for them. To improve coordination, Mexico could formalise collaborative spaces across government levels to align on governance, technology, data, and regulations, following practices like the European interoperability framework (Criado, 2025[43]).
Achieving the technical interoperability across public sector IT systems is essential for creating a unified digital file system (expediente digital), enabling users to store and access government-issued and submitted documents in a single, officially recognised repository. Through interoperable databases, public agencies will no longer need to request users documents already available in the system. However, ensuring interoperability presents significant technical challenges, given the diversity of software and IT infrastructure across public agencies.
To address these barriers, Mexico issued new legislation granting the ADTT the adequate governance authority. Operating under a federated model, where each administration manages its own data and connects to a central entity, Mexico’s approach for interoperability aligns well with its decentralised federal structure. All public agencies are now mandated to ensure interoperability of their information systems and digital platforms in accordance with ADTT guidelines. They must also seek ADTT approval for any change to IT systems and hardware to maintain standardisation. While these measures are a positive step in the right direction, full interoperability will require substantial resources, particularly skilled technical staff, and will take years to achieve. As a first step, ADTT is mapping existing digital infrastructure and capabilities at the state and municipal levels. In addition, it has established the National Center for Public Technology, which maintains a code repository of reusable digital solutions. This initiative enables local governments to access and implement these technologies helping to reduce costs and accelerate the deployment of high-impact public digital services.
Mexico could promote international digital interoperability by engaging in intergovernmental initiatives to harmonise standards, share resources, and support cross-border projects. Aligning national regulations with global frameworks would enhance open data efforts and enable cooperation on key issues like trade, customs, health, migration, and justice.
4.4.3. Expanding digital service coverage and ensuring equitable service provision
A major barrier to Mexico’s digitalisation is the limited coverage of digital identity, a foundational element in advanced digital governance systems like Estonia’s (Box 4.5). In July 2025 Mexico introduced a mandatory official identity document, the new biometric Unique Population Registry Code (CURP), which will become essential for accessing public services. This reform, alongside measures like new Telecommunications Law requiring phone line registration with user identification, is expected to significantly boost adoption of digital identity. Widespread use of remote identity verification through biometric data (e.g., fingerprints, facial recognition) and secure authentication methods will be crucial for rapid uptake.
Widespread distrust in public institutions remains a major barrier (Figure 4.19) to the diffusion of digital identity. Almost half of Mexican adults are concerned that their personal data may be misused (ENCOAP, 2023[44]). While governments may access personal data for legitimate purposes like law enforcement and national security, the absence of binding international standards and the risk of surveillance abuses, such as profiling, highlight the need for careful safeguards to balance privacy rights with public interest. For example, the identification obligation introduced by the Telecommunications Act yet lacks clarity on key aspects such as data protection measures, the specific responsibilities of concessionaires as data controllers, and mechanisms to ensure compliance without infringing on fundamental rights. These aspects should be addressed in the guidelines to be issued by the newly established Telecommunication Regulatory Commission, with particular attention to their consistency with the principles of personal data protection, proportionality, and minimal intervention.
Creating an autonomous privacy regulator, free from political influence, would strengthen public trust by safeguarding personal data and preventing misuse (see Section 4.3.6). France’s Commission Nationale de l’Informatique et des Libertés offers a strong precedent. Established in response to public concern over privacy, it ensures that privacy and individual rights are respected amid technological advancements. Mexico’s National Electoral Institute (INE) offers a domestic parallel. Since its founding in 2014 to guarantee free and fair elections, INE has become the country’s most trusted public institution (Latonobarometro, 2024[45]), thanks to its institutional independence and budgetary autonomy. A similarly structured privacy authority could play a vital role in safeguarding citizens’ rights and reinforcing democratic accountability.
Estonia introduced its national digital identity in 2000, granting legal equivalence to electronic and face-to-face identification. Embedded in the national ID card, the digital identity enables secure authentication across digital platforms. Complementary tools such as Mobile-ID and Smart-ID extend secure access to mobile devices, ensuring universal usability. This system underpins both public and private sector transactions, with legal recognition across government agencies, incentivizing service providers to develop compatible platforms. Citizens can use their digital identity to access nearly all public services, including business registration, e-voting, e-prescriptions, health records, residence declarations, and social benefit claims. Digital signatures, enabled by the digital identity, are widely adopted and legally binding. Their mandatory recognition by public institutions accelerated uptake and built trust among users. The widespread use of digital identity and digital signatures is estimated to save Estonia approximately 2% of GDP annually.
Source: (OECD, 2019[46])
% of adult population with high or moderately high trust in the civil service and confidence that government agencies will only use their data for legitimate purposes
Note: Share of responses corresponding to values in the range 6-10 on a 0-10 scale.
Source: OECD Trust Survey 2023.
To expand digital service coverage in Mexico, tools must be inclusive and accessible to vulnerable groups. While digital services improve access, they can also exclude those with physical, psychological, financial, or social limitations, often the ones who need them most. Inclusive design and a multichannel approach, combining digital and traditional options, are key.
Since most Mexicans use mobile devices for internet access, mobile-friendly platforms are essential. Non-digital channels remain important for those who prefer traditional methods. Support networks, like family and friends, can help bridge access gaps, as seen in Poland’s inclusion of seniors (Ciesielska, Rizun and Chabik, 2022[47]). Data-driven methods, such as big data and administrative datasets, can help identify and support vulnerable groups, as done in European employment programs (Csillag, 2024[48]). Iceland’s use of digital power of attorney also enables trusted individuals to assist those unable to manage digital accounts.
4.4.4. Enhancing data intelligence and open government data policy
The National Agency for Digital Transformation and Telecommunications (ADTT) aims to leverage advanced technologies to improve policymaking, detect irregularities, and prevent fraud, key steps toward improving government transparency, efficiency and accountability. Ensuring public access to data, algorithms, and policy-making processes, within legal and public interest boundaries, is essential to promoting transparency, accountability and inclusiveness, while preventing digital exclusion
The ADTT has already achieved promising early results from enhancing data intelligence, as improved customs controls have led to a 26% increase in enforcement in early 2025. However, significant obstacles remain. Legal barriers currently prevent ADTT from accessing all federal databases, limiting its data collection capacity. Amending Mexico’s security and telecommunications laws would enable better data management at the federal level. Additionally, limited computational capacity poses a challenge. A new data centre under development in Hidalgo represents a positive step. However, additional investment in data infrastructure is needed to ensure the country has the processing power required to support large-scale digital services and data integration.
Mexico has room for improving its open government data policy (Figure 4.20). Key areas for progress include publishing data in reusable formats, engaging stakeholders to identify data needs and expand access to high-value datasets. Mexico has taken steps in the right direction, notably through its MX Open Data Infrastructure (Infraestructura de Datos Abiertos MX), an online survey designed to identify datasets most valuable to citizens, and the creation of the Open Data national Platform, which mandates all public institutions to publish data in standardised, reusable formats. However, further progress is needed in stakeholder engagement, particularly for assessing data quality. This would help Mexico unlock the full potential of open data for transparency, innovation, and public service improvement.
Open, Useful and Re-usable data (OURdata) Index, from 0 to 1 (or "best government policies for open data"), 2023
Note: The OURdata composite score measures government efforts to design and implement national open government data policies and ranges from 0 (“worst”) to 1 (“best”). LAC is a simple average of Chile, Colombia, Costa Rica, Brazil and Peru.
Source: OECD (2025), Government at a Glance 2025.
To ensure public access to data, Mexico could adopt open-source software in the public sector and leverage digital platforms not only for information dissemination but also for collaborative governance. Such platforms would enable citizens and stakeholders to co-create public value through consultation, engagement, and shared decision-making.
OECD countries offer strong models for e-participation and government transparency. Colombia’s Urna de Cristal uses multiple channels (TV, radio, social media, web, and SMS) to inform citizens about government actions and enables direct engagement with public institutions. Canada’s GCCollab is an online portal for collaboration among public servants, academics, and stakeholders. France’s Policy of Contribution to Free State Software promotes open-source development in the public sector by guiding civil servants in contributing to free software (OECD, 2020[49]).
4.4.5. Making cybersecurity a priority
Cybersecurity is an increasingly critical issue for Mexican institutions and businesses, with the country representing a significant share of cyberattacks in Latin America. The growing frequency of attacks, which targeted major entities such as Pemex and the National Insurance and Finance Commission, exposes vulnerabilities in critical infrastructure. These incidents highlight weaknesses in Mexico’s cybersecurity framework (Figure 4.21, Panel A) , which suffers from gaps in legal frameworks, technical expertise, capacity development, and international collaboration to combat cybercrime (see also chapter 1 in this survey). For instance, the adoption of basic security measures remains limited and few servers employ encryption technologies to secure online transactions (Figure 4.21, Panel B).
Establishing a comprehensive cybersecurity law is an urgent priority. Although Mexico published its National Cybersecurity Strategy in 2017, it still lacks a dedicated cybersecurity law, and the existing legal framework remains fragmented across various domains. A dedicated cybersecurity law would establish common standards, define new cybercrimes, and introduce specialised institutions, such as a cybercrime prosecutor’s office or designated cybercrime judges. It could also lead to the creation of a National Cybersecurity Agency aligning Mexico with practices in other OECD countries (e.g., the U.S., France, Italy). A national agency would ensure consistent cybersecurity oversight across all levels of government.
Note: LAC is a simple average of Chile, Colombia, Costa Rica, Argentina, Brazil and Peru. In Panel B, secure Internet servers are servers that use encryption technology in internet transactions.
Source: World Bank Global Cybersecurity Index (database); and World Bank World Development Indicators (WDI) (database).
Strengthening cybersecurity within the public sector is a second key priority. A recent survey revealed that just 17% of federal agencies are prepared for cyberattacks. To address it, Mexico established in 2025 the General Directorate of Cybersecurity (GDC) under the Agency for Digital Transformation and Telecommunications (ADTT). The GDC’s mandate includes evaluating cybersecurity service providers, developing a new National Cybersecurity Strategy, training public sector personnel, and regulating cybersecurity maturity across federal administrations. In its first 11 months, the GDC has made progress, including the implementation of an early warning system that improved vulnerability detection in federal institutions. The CDG is also expected to publish the new National Cybersecurity Strategy in November 2025. However, its effectiveness is constrained by key challenges. It lacks a regulatory framework to assess cybersecurity maturity, its scope is limited to federal agencies, with non-binding cooperation at state and municipal levels, and it is severely understaffed with only 15 personnel. To effectively safeguard public institutions, Mexico must extend CDG’s mandate to all public entities and increase its resources and staff.
To enhance the quality of cybersecurity and information security management in federal agencies, international standards such as ISO 9001 and ISO/IEC 27001 could be promoted. Establishing a national incident response center, possibly building on the existing Cyber Incident Response Center, would strengthen threat monitoring and response capabilities. The GDC could also lead awareness-raising efforts through public campaigns, training, and education programs. International cooperation could be expanded to achieve deeper engagement in areas like mutual legal assistance, extradition, and joint investigations. Collaborating with foreign governments, academia, and ICT firms on cybersecurity research would help develop advanced protection tools and methodologies.
Mexico’s digital transformation is hindered by a growing shortage of skilled talent. In 2023, 69% of firms reported difficulty finding qualified workers, up sharply from 38% in 2013, though below the global average of 77%, (Manpower, 2023[50]; IMCO, 2023[51]). However, the shortage is particularly acute in digital skills, with Mexican firms facing a more pronounced gap than most OECD countries and regional peers, (Figure 4.22). Even with investments in training, high turnover driven by intense competition often prevents firms from retaining talent long enough to realise productivity gains. Medium and large companies, typically more productive and quicker to adopt digital technologies, are disproportionally affected. Addressing these skill gaps is critical to unlocking Mexico’s digital potential and sustaining productivity growth. The current administration has acknowledged these challenges and, through its Mexico Plan, elaborated a series of strategies aimed to create 1.5 million additional jobs in specialised manufacturing and technology sectors by 2030.
To fully harness the productivity potential of digital technologies, Mexico must also mitigate the disruptive effects of digital transformation on its labour market. This is key for fostering inclusive growth and sustainable development. The potential impact of generative AI on productivity and labour market provides an illustrative case. Its widespread adoption is estimated to boost aggregate productivity by 0.1% to 1.5% annually, and impacting up to 35% of jobs in Mexico, roughly 20.5 million positions (Gmyrek, Winkler and Garganta, 2024[52]). Of these, one third (13.4%) may benefit from productivity gains, while 2.3% are at risk of full automation. The outcome for the remaining jobs remains will depend on whether AI replaces tasks or creates new complementary.
Against this background, policy action is required on multiple fronts. Strengthening basic education, to equip all Mexicans with foundational skills, including basic digital skills, will be key to support lifelong learning and adaptability to fast-changing labour market requirements. Expanding vocational and technical training and increasing tertiary education opportunities in STEM fields, are also crucial and will increase the pool of professionals with advanced digital skills needed by most innovative industries. Promoting targeted upskilling and reskilling programmes will help ensure current workers adapt to the evolving labour market demand. Enhancing digital competencies within the public sector can support the development of digital government services. The following subsections will explore each of these areas.
Digital skills among active population, from 1 ("not at all") to 7 ("to a great extent"), 2023
Note: Score computed based on the average response of companies operating in this country to the Executive Opinion Survey question: “In your country, to what extent does the active population possess sufficient digital skills (e.g. computer skills, basic coding, digital reading)?” [1 = “not at all”; 7 = “to a great extent”]. LAC is a simple average of Chile, Colombia, Costa Rica, Argentina, Brazil, and Peru.
Source: IDB (2023), Informe anual del Índice de Desarrollo de la Banda Ancha: brecha digital en América Latina y el Caribe.
4.5.1. Improving foundational skills
Improving educational outcomes is essential for Mexico’s digital transformation, yet international assessments show that many young Mexicans perform well below the OECD average in foundational skills such as math and science (Figure 4.23). 15-year-olds score over 70 PISA points below the OECD average, equivalent to more than three years of schooling (OECD, 2023[53]). Weak basic skills limit lifelong learning and basic ICT competencies. For instance, only 25% of Mexican youth and adults have used basic arithmetic formulas in spreadsheets, 14 percentage points below the OECD average (OECD, 2024[54]).
Previous OECD surveys (OECD, 2024[2]; OECD, 2022[3]) and Chapter 2 of this Survey highlight persistent challenges, including low upper secondary attainment, still out of reach for 42% of 25–34-year-olds, regional disparities and limited learning times. Extending primary school hours and early childhood education, enhancing teacher training and targeting resources more effectively would raise performance, reduce regional disparities, and build the digital skills foundation essential for future growth.
Strengthening Mexico’s digital education policy can help improve the overall effectiveness of its education system. A key pending challenge is to increase schools’ connectivity, which lags behind OECD and regional peers. As part of the Plan Mexico, the current administration has committed to achieving universal school connectivity by 2030. Prioritising improving schools’ connectivity and teachers training is critical to close digital divides. Innovative strategies, such as non-monetary spectrum access schemes (see Section 4.3.1), could help expand connectivity in underserved areas.
Encouraging teachers to engage in continuous professional development is essential for the effective use of digital education tools in the classroom. Incentives such as accreditation or certification for digital skills can sustain engagement.
Note: LAC is a simple average of Chile, Colombia, Costa Rica, Argentina, Brazil and Peru.
Source: OECD PISA 2022 (database).
ICT skills are one of the 21st century competences that students are called to develop to be ready for today’s rapidly changing society and job market. To prepare students for a digital future, Mexico should develop and implement a curricular framework across all educational levels that promotes digital skills and the responsible use of AI-based technologies, like in Austria (only in high school), Germany, Portugal and South Korea (UNESCO, 2022[55]). This framework should introduce digital tools in everyday contexts, progressing to programming in modern languages, with an emphasis on information literacy, data analysis and computational thinking. It could also promote extra-curricular activities such as computer clubs and online competitions to reinforce digital competencies. AI education tools should respect international standards (e.g., OECD Educational AI Guidelines and EdTech indicators) to ensure that AI in education is inclusive, ethical, and responsive to technological change. This approach would help equip students with the skills needed to thrive in a digital economy and foster a culture of innovation and responsible technology use.
To maximise the benefits of digital tools in education, Mexico requires robust monitoring and evaluation mechanisms to assess their impact on learning and digital literacy, thoughtful implementation, and targeted support for both students and teachers. This might be achieved by using evidence-based learning and assessment platforms that focus on digital skills, such as the OECD PILA platform. While technology can enhance learning, it also introduces risks like digital distractions, which can undermine learning outcomes. Students’ susceptibility to distraction is influenced by how they interact with digital resources and the types of devices they use (OECD, 2024[56]). Students’ positive attitudes and self-confidence in using ICT, along with teachers’ frequent use of digital technology in the classroom, are key drivers of improved learning outcomes (OECD, 2024[57]). Reducing digital distractions requires policies that build students’ digital skills and confidence, and equip teachers with training in digital pedagogy
Improving Mexico’s education information system is key to better decision-making, teacher training, and targeted student support, as analysed in the 2024 Economic Survey of Mexico. The lack of a national standardised assessments implies that there is no performance data that could be used for monitoring and improvement. Reintroducing assessments, designed mainly for diagnostic purposes and covering broader skills such as problem-solving and critical thinking, as recommended in Chapter 2 of this Survey, would help identify weaknesses and track progress. Mexico could also leverage digital education data more effectively by promoting responsible access for research and evaluating the use of digital resources in classrooms (OECD, 2023[58]).
4.5.2. Strengthening advanced digital skills
Scaling up vocational education and training
Firms across Mexico face growing challenges in finding talent, and as the digital transformation reshapes all industries, digital skills become increasingly vital for Mexican workforce, even for non-ICT professions. For instance, digital literacy is now essential for manufacturing workers who need to operate advanced machinery, for healthcare professionals using telemedicine platforms, and for farmers adopting precision agriculture technologies. These developments highlight the need for a workforce that is digitally competent across all sectors, not just within the ICT sector.
Expanding vocational education and training (VET), including dual education programs, and strengthening its capacity to deliver digital competencies, is then essential to equip more Mexicans with the technical and digital skills needed for quality formal employment (see also Chapter 2). Currently, only 1% of 25-34 year-olds hold a VET qualification, compared with 22% on average across the OECD. A promising development is the rise in enrolment in Bachillerato Tecnológico, where 1.8 million students pursue both a high school diploma and a technical degree, around 20% in STEM fields, and where three new courses are being added to the programme focusing directly on digital skills. Dual education programmes, introduced in 2015, remain limited, with only about four thousand students and one thousand graduates, just a fraction of Mexico’s six million high school students. Despite their small reach, these programmes have shown positive results, with nearly all participating companies (822 out of 834) expressing willingness to hire dual education graduates. Successful initiatives (Box 4.6) show how industry partnerships can train skilled technicians aligned with modern production needs, including digital manufacturing and automation. To strengthen technical education, the Agency for Digital Transformation and Telecommunications, in collaboration with the Ministry of Education and the National Council of Technical Education, plans to update upper secondary curricula in telecommunications and expand dual education across all upper secondary technical schools. The goal is to produce 150,000 new professionals annually by 2030.
Scaling up these programmes requires closer collaboration between schools and employers, especially in sectors where digital skills are becoming foundational, such as advanced manufacturing, automotive, and ICT services. Greater involvement of SMEs could broaden impact, particularly if they receive support to design digitally-oriented training plans and integrate apprentices, as in Spain’s technical assistance programme for SMEs (OECD, 2017[59]). Expanding short-cycle vocational programs with a strong digital focus could accelerate the development of Mexico’s digital talent pool, offering faster, more inclusive pathways into labour markets. Given that many upper secondary graduates in Mexico lack basic digital competencies, vocational curricula should embed digital literacy, coding, data analysis and problem-solving as core components to close these skills gaps. In parallel, strengthening career guidance systems across different educational levels, as recommended in Chapter 2 of this Survey, will help to align learning pathways with evolving labour market needs and to reduce persistent digital and technical skills mismatches. To maximise impact, outreach efforts must highlight digital career opportunities through career guidance, interactive digital platforms, and partnerships with tech clusters. These initiatives should raise awareness of digital career opportunities and link students to fast-growing sectors of the economy.
Several Mexican firms successfully adopted dual education to train technicians aligned with industry needs:
The Bocar Training Center in Lerma trains up to 140 students in mechatronics and industrial mechanics. The program is certified by the German Chamber of Commerce and Industry.
The BOSCH Technical Training Center in Toluca focuses on automotive sector training through the Dual Education model. Over 1,220 students have graduated, with 40% choosing to stay and work at BOSCH.
The Volkswagen Dual Training Center in Puebla offers a 3-year program based on the German Dual Model, preparing specialist technicians for integration into Volkswagen de México and its supplier network. Local technical institutions collaborate with car companies to provide reskilling programs in the region.
Strengthening STEM tertiary education
Firms increasingly require workers with advanced digital, literacy and numeracy skills to fully leverage new technologies and work methods driven by digitalisation. Yet, the share of adults in Mexico with tertiary education remains significantly below the OECD average across all levels (short-cycle, bachelor’s, master’s, and doctoral degrees) (Figure 4.24, Panel A). While the number of tertiary graduates, and the proportion of STEM graduates, is gradually increasing, the overall shortage of tertiary graduates restricts the pool of professionals with advanced digital and technological skills, constraining Mexico’s ability to harness the full potential of digital transformation and innovation opportunities. The current administration has set the ambitious goal to expand higher education capacity by 330 thousand places by 2031. This includes the creation of a National Laboratory of Artificial Intelligence, announced for late 2025, which aims to graduate 10,000 students by 2026 in fields such as data analysis, AI, cloud computing, and cybersecurity. However, the plan lacks clarity regarding the distribution of these places across fields of study, the required funding, and mechanisms to ensure implementation. To ensure this expansion supports Mexico’s digital future, a stronger emphasis on digital competencies, such as data analysis, software development, cybersecurity, and AI literacy, is essential.
Collaboration between higher education institutions and industry partners in designing digitally-focused curricula remains limited. Notable exceptions exist, particularly among technological universities. For instance, institutions in Querétaro and Puebla have successfully co-designed and co-delivered programmes with industry partners in sectors such as automotive and aerospace, tailored to regional needs. These models could be scaled up nationwide.
Making STEM fields more attractive, especially to women, is another priority. The gender gap in STEM remains significant, as in many OECD countries (Figure 4.24, Panel B). Strategies to boost female participation include early exposure to STEM subjects, mentorship programmes, showcasing successful women in science and technology, and fostering inclusive learning environments that challenge stereotypes and encourage girls to pursue scientific careers. A promising example is the Tecnológico de Monterrey’s pilot initiative under the international MakerWomenSTEM programme. This project aims to empower women in STEM by training mentors and creating dynamic, inclusive, and accessible educational spaces. This initiative should be rigorously assessed and, if proven successful, scaled up to broaden its impact nationwide.
Note: LAC is a simple average of Colombia, Costa Rica, Argentina, Brazil and Peru.
Source: OECD (2024), Education at a Glance 2024: OECD Indicators; and OECD (2022), Education at a Glance 2022: OECD Indicators.
Promoting upskilling and reskilling
Many Mexicans with low skills could improve their employability through targeted digital upskilling, as digital competencies are increasingly essential even for non-ICT professions. The potential pool is large: almost one in five young adults (18-29) is not in education, employment or training (NEET), and a substantial share of the population has low educational attainment (see section 4.5.1). Rapid technological is reshaping labour markets, requiring many workers to reskill for digital-intensive roles, especially as traditional occupations decline.
Mexico has launched promising training initiatives (Box 4.7), such as the Youth Building the Future programme (Jóvenes Construyendo el Futuro), which aims to reduce youth unemployment and support job readiness. While the programme facilitates temporary labour market entry (CONASAMI, 2023[60]), its impact on permanent formal employment remains limited (CEFP, 2024[61]). To improve and scale the programme, a full assessment of the digital relevance and quality of the training offered is needed, as recommended in the 2024 Economic Survey of Mexico,. Strengthening the programme’s digital components, such as basic IT skills, coding, and digital communication, could better align it with labour market demands.
To close skill gaps and reduce inequality, Mexico should further promote demand-driven digital training for low-skilled adults, who are less likely to participate in upskilling initiatives (OECD, 2017[59]). International experience underscores the importance of collaborative, demand-driven training approaches to make upskilling accessible and effective. France’s Préparation Opérationnelle à l’Emploi and Action de Formation Préalable au Recrutement programmes offer incentives for employers to hire and train low-skilled unemployed individuals, yielding strong employment outcomes. The UK’s Union Learning Fund supports training initiatives co-designed by employers, employees, and learning providers, with over two-thirds of participants advancing to higher qualification levels. Mexico could adapt and scale similar models to ensure digital inclusion and resilience in its workforce.
The Youth Building the Future programme provides practical training for unemployed youth aged 18–29 in public or private workplaces for up to 12 months, offering minimum wage support and health insurance. Priority is given to marginalised and vulnerable groups. Between 2019 and 2024, nearly 3 million young people participated, backed by an unprecedented investment of 115 billion pesos (USD 6.1 billion).
The Siemens SiTecSkills Academy offers targeted qualification programs focusing on technical reskilling and upskilling, complemented by professional consulting and support. Successful participants obtain certifications that strengthen their employability in Industry 4.0.
Siemens Xcelerator is a digital platform with courses, interactive classes and certificationsto that facilitate the acquisition of knowledge and skills on Siemens softwares.
The Roshfrans Technological Institute offers online specialised training in automotive mechanics and lubrication to his workers Confederación Nacional de Talleres. In partnership with CEDVA and the CONOCER National Skills System, it provides certifications endorsed by the Ministry of Public Education.
Online hackathon are digital events in which participants work in teams to develop technological solutions to previously posed challenges. They enable develop innovative ideas in a limited time (24 hours, 48 hours or more) and in a collaborative digital environment, connect multidisciplinary talent (developers, designers, marketers, etc.) and encourage creativity and critical thinking.
Cisco SE courses offer free online training in digital skills across eight modules, including cybersecurity, networking, and data science. These courses are promoted by the Ministry of Economy and the Ministry of Labour and Social Welfare, in collaboration with the Cisco Networking Academy.
Using digital platforms to match candidates with training and job opportunities is a promising strategy for reskilling (Commission/ETF/ILO/UNESCO, 2024[62]; Brioscú et al., 2024[63]; OECD, 2025[64]). The New Career Network, promoted by the European Round Table for Industry, connects job seekers with top reskilling programs and employers, using AI for optimal job matching. In Mexico, similar platforms exist at the local level, such as in the automotive sector, but remain limited in scope. Expanding these initiatives nationally would require building networks of employers and training providers, integrating AI tools to analyse skills gaps, and co-designing personalised learning paths. Such platforms can make reskilling more responsive, inclusive, and aligned with labor market needs.
Mexico can promote online skills development through conventional providers and massive open online courses. However, effectiveness depends on well-designed content tailored to diverse learning needs and supported by strong testing and certification systems. Poorly structured courses, often too long or overly basic, can lead to low motivation and completion rates. Ensuring quality of online learning also requires training educators to teach effectively in hybrid environments that blend digital tools with in-person instruction.
Promoting online training and microcredentials can further strengthen digital upskilling. Well-designed online learning, supported by testing, certification, and trained educators in hybrid environments, can expand access at lower cost, while avoiding common pitfalls of low-quality online courses. Microcredentials, short, modular certifications often focused on digital and technical skill, offer flexible training options, making them well-suited to meet rapidly changing skill demands and reach a broad pool of learners (OECD, 2023[65]). Their modular structure allows adaptation to diverse learner profiles, including those in initial education. To build an effective microcredential system, Mexico could draw on international experiences from OECD countries such as Finland, the Czech Republic, the Slovak Republic, Slovenia, and Spain where microcredentials have been successfully integrated into national education and workforce strategies (OECD, 2023[66]).
4.5.3. Promoting digital skills in the public sector
Equipping the public sector workforce with digital and complementary skills is key to advancing Mexico’s digital transformation. The ADTT’s Public Coding School is a valuable initiative, offering free online ICT training with tutoring primarily for public servants, and aimed to train over 100 thousand individuals by 2030. However, broader competencies, including basic digital skills, professional expertise, socio-emotional abilities, and leadership, are needed across the workforce. To build on current efforts, Mexico could learn from OECD countries where reskilling in-house staff is often preferred over hiring scarce external talent. Best practices also highlight the importance of a comprehensive skill strategy including developing a digital competence framework, designing targeted training programs, offering incentives for participation, and regularly evaluating learning outcomes to support digital government (Burtscher, Piano and Welby, 2024[67]). The ADTT’s provision of a 120-hour course on technological foundations for the public sector, which benefited approximately 2,206 civil servants between January and July 2025, is a potential positive step, provided that its impact on participants’ digital capabilities is effectively assessed and confirmed.
Developing a digital competence framework helps identify the skills civil servants need to drive digital transformation. It supports recruitment, training, skills assessment, and strategic workforce planning. Effective frameworks benefit from broad consultation with civil servants across institutions, external experts, and regular updates. For example, Denmark’s Government Digital Academy uses a qualitative, stakeholder-driven approach to shape its digital skills model. In the United Kingdom, an expert council oversees the development of the Digital, Data and Technology Capability Framework.
Public administrations typically use a mix of formal training and informal learning to develop digital skills across different employee groups (Box 4.8). Short, self-paced online courses offer broad accessibility at low cost, while longer, tailored programs can be more effective when targeting civil servants in key strategic roles. To encourage participation, common incentives include certification upon course completion, often linked to career advancement or economic incentives, and flexible work arrangements to accommodate learning.
Australia - The Australian Public Service Commission supports digital skills through formal programs offering nationally recognised qualifications, alongside informal learning like coaching and mentoring for female executives. However, these initiatives are targeted at selected individuals rather than the broader workforce.
France - France promotes digital government skills through multiple institutions. The Interministerial Digital Department offers workshops on key topics like service design and accessibility, and runs a coaching program for women in tech. The MENTOR platform centralises training for all civil servants, while programs like Cycle Supérieur du Numérique target select officials expected to influence broader teams.
Korea - Korea’s National Human Resources Development Institute (NHI) provides structured training through both e-learning platform and in-person courses. Training is tailored to different skill levels and job roles. The Talent Development Platform supports informal learning and content sharing among civil servants. A unique feature is its integration with HR data to offer personalised training recommendations.
Evaluating digital training is essential to gauge its effectiveness and identify areas for improvement. Assessments may cover participant satisfaction, learning outcomes, and the impact on individual performance and organisational goals. In Spain, the BAIT system certifies digital skills of the Basque administrative staff. After completing training and passing the BAIT test, civil servants receive a certification that contributes to their digital profile and may support career advancement. In the UK, the Central Digital and Data Office conducts annual evaluations of digital roles. Test results are used as an indicator of employee’s productivity and can justify pay increases, offering strong incentives for professionals to engage in skills assessments.
Mexico has yet to fully capitalise on the opportunities offered by advanced computing technologies, particularly artificial intelligence (AI), big data analytics, and cloud computing, to boost productivity and improve living standards. While around 362 companies are developing AI tools in areas such as machine learning, natural language processing, and predictive analytics, adoption remains limited: only one in three firms uses AI in any capacity, and adoption of advanced digital technologies remains limited (Figure 4.25).
% business using cloud computing services by size of business
Note: Businesses are classified as small (10–49 employees), medium (50–249 employees), or large (250+ employees). Data for Mexico comes from INEGI Censos Económicos 2024.
Source: INEGI Censos Económicos 2024 (database); and OECD Going Digital (database).
Mexico also trails regional peers in AI adoption, ranking eigth in the Latin American Artificial Intelligence Index 2025 (ILIA), behind Chile, Brazil, Uruguay, Colombia, Costa Rica, Argentina, and Peru. Key weaknesses include limited infrastructure (e.g., data centers, secure servers, high-performance computing), as well as legal uncertainties due to lack of governance. Notably, Mexico should update its national AI strategy, mechanisms for civil society engagement, and a dedicated institution to oversee AI development (Lagunes A. et al., 2024[68]). Addressing these gaps is essential to unlock the transformative potential of Ai and emerging technologies and position Mexico as a competitive player in the digital economy. This requires investment in infrastructure, multi-stakeholder collaboration, and a robust legal and regulatory framework to guide ethical and inclusive AI development.
4.6.1. Accelerating AI adoption among SMEs
The adoption of AI and emerging technologies is especially challenging for small and medium-sized enterprises (SMEs), the backbone of Mexico’s economy (see also Section 4.2.3). To accelerate SMEs digitalisation, Mexico could expand and refine existing initiatives such as Fit for Partnership, which trains SME owners in Germany for international collaboration, Prosoft Industria 4.0 MX, which fosters human capital and IT services through public-private partnerships and Industrial Innovation Centers, and the digital platform MIPYMESMX2.0, which promote digitisation and business training for SMEs. While impactful, both programmes remain limited in scale and focus primarily on early-stage digital adoption. To fully unlock SME potential, broader support is needed. International best practice show that effective strategies combine digital skills training, targeted funding, tailored solutions, and strategic advisory support (Box 4.9). Many OECD countries like Denmark and Germany, and regional peers like Brazil, offer a more comprehensive support, including funding for digital investments and free consulting and training services. Singapore’s Go Digital programme stands out as a leading example, providing a robust suite of measures to accelerate SME digitalisation. To maximise impact, Mexico could consider expanding its support to include technical assistance, financing for ICT adoption, and ongoing training to ensure SMEs can integrate and utilise digital tools effectively.
Brazil - Brazil’s More Productive Brazil (Brasil Mais Produtivo) programme (2016–2018) supported around 3,000 manufacturing SMEs with consultancy services aimed at optimizing production processes. With a modest budget of USD 14 million, the initiative achieved an average 52% productivity increase among participating firms.
Denmark - Denmark launched SME:Digital and SME:Robot to promote full digitalisation. SME:Digital provides grants for consulting services, investment in digital solutions, and implementation support. Between 2018 and 2022, it funded nearly 6,000 digital projects. The programme also offers case studies and guidance to inspire and inform businesses.
Germany – Germany established a network of 26 Mittelstand 4.0 Centres of Excellence (renamed Mittlestand-Digital Centres in 2021), offering comprehensive support across the entire value chain. In 2020, over 65,000 SMEs benefited from these services. Additionally, the Digital Now (Digital Jetzt) programme incentivises SME investments in digital technologies and IT security, including employee upskilling.
Singapore - Singapore’s Go Digital programme offers a holistic framework to support SMEs in their digital transformation. Enterprises can identify suitable digital solutions through sector-specific Industry Digital Plans and access pre-approved solutions with grant support. For tailored guidance, SMEs can turn to the SME Digital Tech Hub and a nationwide network of SME Centres, which provide expert advice and implementation support. Between 2017 and 2020, participating firms achieved increases in revenues and productivity, with smaller firms experienced the greatest gains.
Source: Impact Evaluation of SMEs Go Digital Programme (2023); (OECD, 2020[69]); (Radicic and Petkovic, 2023[70]).
4.6.2. Building a National AI Strategy
Mexico’s National Digital Strategy 2021–2024 does not currently address artificial intelligence (AI) or other emerging digital technologies (Ibarra, De la Pena and Santoyo, 2024[71]). Although Mexico was an early mover with its 2018 AI strategy, the initiative lacked continuity and failed to evolve into a long-term public policy with defined goals and evaluation mechanisms. Today, no comprehensive law or strategy governs AI in the country. A constitutional reform bill introduced in 2025 aims to empower Congress to legislate on AI, paving the way for a General AI Law that is expected to be issued in 2026. Discussion from the Congress converge towards a framework including a National AI Commission, risk-based regulation, and protections for privacy and transparency. While progress is underway, implementation remains in early stages. In the absence of an AI law, Mexico could also advance AI governance by leveraging other legal instruments, such as data protection laws.
The Agency for Digital Transformation and Telecommunications (ADTT) is responsible for developing and implementing the Mexico’s national Digital Strategy, which includes a forthcoming National Artificial Intelligence (AI) Strategy. This will be formalised through the issuance of a National Priority Programme Plan on AI. Mexico would benefit from an updated national AI strategy to keep pace with recent technological advancements, as implemented by most OECD countries. This strategy would provide a long-term vision and including concrete actions for the development, use, and governance of AI and other advanced technologies. It could also be supported by a public dashboard to monitor progress through an adequate set of indicators, ensuring transparency, accountability, and alignment with national development goals. To establish a national AI agenda Mexico could build on domestic efforts, such as the Mexico's National Alliance for Artificial Intelligence (ANIA), and draw inspiration from existing national strategies (Box 4.10). Additionally, best practices in AI governance from countries that have established (Chile, Norway, Colombia), or are currently debating in Congress (Brazil), comprehensive institutional frameworks for AI, offer valuable insights for Mexico’s approach (Box 4.11).
National AI strategies tend to diverge in their top priorities, which include:
Leadership and Innovation: The United States and China aim to become global leaders in AI, prioritizing technological advancement and allocating substantial resources to research, development, and application.
Talent and Education: Canada and Singapore focus on building a skilled workforce and integrating AI education across sectors to encourage widespread adoption.
Sectoral Integration: Japan, South Korea, and Canada promote AI development in targeted sectors such as healthcare, agriculture, and mobility to maximise its societal impact.
Independent Development: Germany’s strategy emphasises the creation of domestic AI tools, aiming to reduce reliance on foreign technologies and maintain technological sovereignty.
Ethics-Centered Approaches: Ethical principles are a core component of most strategies, but they are central to the European Union’s framework and strongly emphasised by Canada.
Brazil: Brazil has advanced its AI governance through the Brazilian AI Observatory which coordinates 11 AI centers focused on strategic sectors like health, industry, agriculture, and cybersecurity. It develops indicators to assess AI impact and maintains a repository of AI documents. The Center for Artificial Intelligence (C4AI/USP) collects training data for dialogue systems in Brazilian Portuguese and indigenous languages.
Chile: Chile is pioneering efforts to integrate ethical principles into public sector AI systems. The “Ethical, Responsible and Transparent Algorithms” project promotes fairness and transparency in AI used for public procurement. It has developed replicable tools to prevent discrimination and protect personal data in services like benefit allocation, hospital waitlists, and school admissions, ensuring these systems are free from gender, racial, ethnic, or social bias. In 2023, Chile issued Latin America's first regulation on algorithmic transparency and released practical guidelines to help public officials address legal and ethical AI challenges.
Norway: Norway launched its national AI strategy in 2020 with the goal of building world-class AI infrastructure through digitalization-friendly regulation, fast and robust connectivity, cross-sector data sharing, and high-performance computing capacity. The strategy focuses on strategic areas where Norway holds a comparative advantage, such as health, energy and mobility, oceans, and public administration. Ethical principles are highlighted as key drivers for the development and use of AI, ensuring respect for individual rights, freedoms, and data protection.
Source: OECD AI Policy Observatory.
4.6.3. Promoting fair and responsible AI regulation
A key challenge for Mexico is to create a regulatory framework that encourages innovation while safeguarding fundamental rights. Flexible, targeted regulations on the use and adoption of AI can prevent overregulation, support digital economy growth, attract investment, and develop domestic talent (see section 4.5.1), two areas where Mexico currently lags behind (Figure 4.26).
To ensure responsible AI adoption, Mexico should establish clear, targeted regulations grounded in technological neutrality, economic competition, risk management, privacy, security, and transparency. Best practices in AI regulation are still emerging globally, and while the European Union offers the most comprehensive framework to date, countries are exploring diverse approaches (Box 4.12). Aligning with international frameworks, such as the OECD AI Principles, which emphasise inclusive growth, human-centred values, transparency, safety, and accountability, would help harmonise governance and foster innovation.
Adopting a regulatory framework should also promote fair competition. This is especially important given the AI market’s concentration among a few large firms. High development costs and infrastructure needs create barriers for new participants entering and competing. Competition authorities in Brazil, the U.S., UK, and EU have raised concerns about potential anticompetitive effects of AI partnerships and acquisitions, and emphasised fair dealing, interoperability, and consumer choice to safeguard competition and foster innovation.
Note: Panel A Top 5 OECD includes Israel, Luxembourg, Estonia, Switzerland and Finland. Panel B Top 5 OECD includes Israel, Sweden, United States, Estonia and Iceland. LAC is a simple average of Chile, Costa Rica, Argentina and Brazil. AI talent concentration at the country level is calculated using the counts of AI talent vis-a-vis the counts of LinkedIn members in that country. As such, AI talent concentration metrics may be influenced by a country’s LinkedIn coverage and should be used with caution.
Source: OECD.AI Policy Observatory; and OECD STI (database).
The United States – The U.S. lacks comprehensive federal AI legislation, relying on existing laws and state-level regulations. The latest federal initiatives reflects a pro-economic-growth stance, emphasising minimal federal intervention and promoting innovation, infrastructure, and national security. Proposed federal legislation generally reflect a cautious federal approach, focusing more on oversight of government use of AI than on regulating the private sector.
European Union - The European Union’s Artificial Intelligence Act is the world’s most comprehensive AI regulatory framework. It uses a risk-based classification of AI systems with tailored obligation and established an EU AI Office responsible for guidance and monitoring. Member states must designate national surveillance authority and a notifying authority to ensure compliance. Innovation is supported through measures such as regulatory sandboxes for testing AI systems and targeted assistance for SMEs and startups.
The United Kingdom - The UK does not have a general statutory AI law but regulates AI through existing sector-specific laws, guided by a non-statutory, principles-based framework. This flexible approach may adapt to the rapid evolution of AI technologies while safeguarding core principles such as safety, transparency, accountability and contestability. These principles are voluntary and interpreted by existing regulators.
Source: (Harris, 2025[73])
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