Iceland Releases National AI Action Plan to Drive Innovation and Responsible Governance

Written by Jeremy Werner

Jeremy is an experienced journalist, skilled communicator, and constant learner with a passion for storytelling and a track record of crafting compelling narratives. He has a diverse background in broadcast journalism, AI, public relations, data science, and social media management.
Posted on 10/22/2025
In News

Iceland has released the English version of its first National Artificial Intelligence (AI) Action Plan. The plan outlines a strategic framework to foster innovation, strengthen digital infrastructure, and promote ethical, human-centered AI development. The plan, published by the Ministry of Higher Education, Science and Innovation, underscores Iceland’s commitment to harnessing AI for sustainable growth and public benefit while ensuring alignment with European and global regulatory standards.

 

The Action Plan details 25 measures aimed at accelerating research, improving education, supporting startups, and integrating AI across sectors such as healthcare, energy, and public administration. It establishes a coordinated national effort to enhance competitiveness, attract investment, and ensure that the deployment of AI technologies aligns with Iceland’s values of transparency, equality, and trust.

 

A major component of the plan involves building robust data and computing infrastructure to support AI research and applications. The government intends to expand cloud and supercomputing access, strengthen cybersecurity frameworks, and establish ethical governance mechanisms to oversee AI implementation. The plan also emphasizes the importance of ensuring data quality and accessibility while safeguarding privacy.

 

Education and workforce development form another key pillar. The Action Plan calls for integrating AI literacy into all levels of education, from primary schools to universities, and expanding opportunities for vocational training and lifelong learning. The government aims to prepare Iceland’s workforce for rapid technological shifts, with a particular focus on bridging skills gaps in AI engineering, data science, and ethics.

 

The document also commits to fostering public sector innovation through the adoption of AI tools that enhance efficiency, transparency, and accessibility. Pilot projects will explore the use of AI in healthcare diagnostics, renewable energy management, and language preservation—particularly for the Icelandic language, which the plan identifies as a cultural priority in the digital age.

 

On the regulatory front, Iceland’s AI Action Plan aligns closely with the European Union’s AI Act, ensuring consistency in ethical and legal standards across borders. It pledges to implement governance systems that uphold human oversight, prevent bias, and ensure accountability in AI decision-making.

 

International collaboration will be key to Iceland’s strategy, with the government pledging active participation in Nordic, European, and global AI research networks. The plan also calls for partnerships with industry and academia to drive innovation while promoting trust and safety in emerging technologies.

 

By combining ethical governance with strong investment in research and education, Iceland aims to position itself as a leader in responsible AI innovation. The Action Plan signals the nation’s intent not only to benefit from technological progress but also to shape its trajectory in a way that safeguards democracy, equality, and the public good.

 

Need Help?

 

If you’re concerned or have questions about how to navigate the AI regulatory landscape, don’t hesitate to reach out to BABL AI. Their Audit Experts can offer valuable insight and ensure you’re informed and compliant.

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