Digital Government Outlook 2026: From Foundations to Transformational Impact

The OECD Digital Government Outlook 2026 reports that though citizens and businesses expect governments to act quickly, adapt to change, and respond effectively, many public institutions struggle to keep pace with these demands. 

The report presents results from the OECD Digital Government Index (DGI) and the Open, Useful and Re-usable Data Index (OURdata), reflecting how governments across 36 OECD members and 8 accession candidate countries have been working toward coherent, effective, and human-centred digital transformation in government.

Digital technologies as core infrastructure

Digital technologies and data are no longer optional tools for reform, but core infrastructure for modern governance. The report emphasises that governments must embed digital, data, and technology infrastructure into everyday operations – from budgeting and regulation to service design and policymaking. Agile, iterative, and collaborative ways of working are now prerequisites for public sector performance, resilience, and trust.

The OECD DGI and OURdata indices measure the maturity and performance of digital government, and show clear improvements since 2023 – the DGI average score for OECD countries rose by 9 percentage points (p.p.) and the OURdata Index, by 5 p.p. 

The largest advances are in how countries govern and use data, design services around users, and adopt AI across policy domains. Governments are much better at developing digital strategies than at implementing or monitoring them. The challenge is to turn a strong digital foundation into everyday practice.

Key findings

• Digital foundations: While most countries have established digital identity governance and government data strategies, gaps persist in unlocking their full potential
  • Only 2/3 of countries report widespread adoption of data interoperability systems
  • Digital identity still fails to guarantee seamless access to public services
• AI adoption: Nearly all OECD governments now use AI, primarily to improve internal processes and public services
  • Most have strategies, dedicated institutions, and training programs in place
  • The foundations for safe, scalable AI use remain weak: few governments evaluate AI tool effectiveness, procurement support is limited, risk assessments and transparency registers are rare
• Management of digital investments: Governments must simplify public services 
  • Setting clear, universal standards
  • Tracking user pain points
  • Involving hard-to-reach groups in design
  • Integrating services across agencies
  • Using data and AI to anticipate needs before they arise

Government actions

The report calls for aligning governance frameworks, skills, and digital investments with measurable outcomes for people and businesses. 

Broaden the use of digital public infrastructure and data across government

Governments should make shared digital infrastructure, such as data-sharing systems, digital identity and common platforms, a standard part of how governments work every day. This shared digital infrastructure should be:

• Backed by clear rules, sustainable funding, strong data governance, and user-centric design approaches 
• Put people's needs and control at the centre, building the trust needed for scalable adoption and use

Continue strengthening digital capabilities for trustworthy and scalable AI in government

Governments should move beyond AI strategies and pilots by putting in place the practical conditions for safe, large‑scale AI use, including:

• Clear accountability
• Reliable data
• Transparent processes
• Smarter procurement support
• Systematic evaluation of what AI is achieving in practice (particularly as governments explore agentic AI)

Design public services around people's lives, not institutional structures

Governments should make public services easier to use by setting clear standards that apply everywhere: 

• Tracking where people get stuck
• Involving those hardest to reach in how services are designed
• Joining up services so people don't have to navigate between agencies
• Using data and AI to offer help before people have to ask for it

Ensure governance, investment and skills fit the iterative nature of digital technologies

Governments should adopt delivery‑oriented governance models that allow them to:

• Fund in stages
• Learn as they go
• Strengthen oversight and evaluation to check if investments are delivering intended results
• Make smarter decisions about building or buying technology
• Invest in the digital teams and skills needed to turn digital foundations into sustained operational performance

As AI advances rapidly, governments face both opportunity and governance challenges. The report helps close the gap between rising expectations and institutional capacity, ensuring digital transformation delivers human-centred, proactive, and trustworthy public services.