Iceland to launch Digital Iceland agency in 2027

Iceland will establish a new government agency for digital services and information technology on January 1, 2027, mbl.is reports. The agency, called Digital Iceland (Stafrænt Ísland), will take over the work of the Digital Iceland project office.

Finance and Economic Affairs Minister Daði Már Kristófersson has decided to establish the agency as part of the government’s public service strategy. The agency’s director position will be advertised this week.

Digital Iceland is also expected to take over information technology projects from Umbra, the operating company of the Government Offices, during the first months of 2027. Other Umbra responsibilities will be reassigned within the Government Offices, and the company will cease operating in its current form.

The new agency will lead the continued development of digital services and help public bodies use new technology to improve services and operations. Its work will build on the knowledge and experience gained through the development of Ísland.is, with the aim of making public services better, more accessible and more cost-effective.

The agency will place greater emphasis on public-sector data and information technology, alongside continued development of services on Ísland.is. The government aims to improve its use of data and artificial intelligence to enhance services and efficiency.

The ministry said these priorities align with proposals presented earlier in October by a working group on artificial intelligence. The group identified the systematic adoption of AI in the public sector as one of three priority tasks, and called for the consolidation of state IT operations and stronger data management to support AI use in government agencies and ministries.