UPDATE — SEPTEMBER 2025:
Iceland has advanced from consultation to execution of its Artificial Intelligence Action Plan 2024–2026. Originally released in draft form in November 2024, the final version was published on July 2, 2025 by the Ministry of Culture, Innovation and Higher Education. The plan retains its 25 targeted measures across five areas—AI for society, competitiveness, education, public administration, and healthcare—but incorporates refinements based on stakeholder feedback received during the consultation window.
The consultation formally closed on August 13, 2025, and implementation is now underway. Government officials emphasized that the plan will be monitored through coordinated follow-up, with regular evaluations and adjustments to ensure progress toward Iceland’s digital transformation goals. Early initiatives are already focusing on workforce training, infrastructure upgrades, ethical safeguards, and data security—the same challenges highlighted during the consultation period.
ORIGINAL NEWS POST:
Iceland Unveils Ambitious AI Action Plan for 2024–2026
Iceland’s Ministry of Universities, Industry and Innovation has released its draft Artificial Intelligence Action Plan for 2024–2026, aiming to position Iceland as a global leader in the responsible use of AI. This comprehensive strategy, now open for public consultation, outlines 25 targeted actions across five key sectors, with the potential to transform Iceland’s economy, public services, and workforce.
Economic Opportunity and National Vision
The action plan builds on the 2021 national AI policy and draws on findings from a joint report by the Ministry and Statistics Iceland. That report estimates that AI could boost Iceland’s GDP by 0.8% to 6% annually by 2029. In real terms, this would add between ISK 174 billion and ISK 1.45 trillion to the economy. Because Iceland has a small and connected population, the government argues it can serve as a model for responsible AI adoption. The plan highlights AI’s potential to drive prosperity and improve the quality of life for citizens.
Five Development Pillars
The plan is divided into five chapters that guide Iceland’s future AI development.
- AI for All: Ensuring equitable access to AI tools and benefits across society.
- Competitive Business Landscape: Empowering Icelandic industries to innovate and compete globally with AI.
- Modernized Education: Preparing the workforce through updated curricula and training programs.
- Efficient Public Services: Streamlining government functions and improving citizen experiences through AI integration.
- Future-Ready Healthcare: Enhancing healthcare delivery with AI-driven diagnostics and patient care.
Workforce Impact and Implementation Challenges
The report predicts that 55% of Icelandic jobs will change due to automation. Public employees could save up to 30% of their time by using AI tools, allowing them to focus on complex tasks. However, the government notes that these benefits depend on solving several challenges. These include workforce training, ethical safeguards, data protection, and improved digital infrastructure.
Public Consultation and Next Steps
As consultation begins, the Ministry is inviting feedback on the draft plan. Stakeholders have until November 21 to provide comments. Officials stress that public input is essential to ensure the final plan reflects Icelandic values such as transparency, sustainability, and inclusion.
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