2 Norway’s digital status
In recent years, Norway has undergone an extensive digital transformation. In practice, we currently live in a thoroughly digitalised society. Norway has a well-developed communications infrastructure, and most people have access to high-speed broadband.
The OECD Digital Government Index 16 assesses the efforts made by governments to establish the foundations necessary for a digital transformation of the public sector. In 2023, Norway ranked fourth among OECD countries. Norway is at the forefront in many areas, including as user-oriented digitalisation 17 Norway also ranks highly in various international assessments, though it is not at the top. 18
There are still many areas with significant potential to better leverage opportunities for gains in digitalisation. The report Rikets digitale tilstand [Digital State of the Realm] indicates that we have not made sufficient progress in implementing the public sector digitalisation strategy for 2019-2025. Several other reports and investigations indicate that we need to renew and streamline existing solutions. We must also become better at harnessing the potential of data and reaping the benefits of digitalisation initiatives. This is supported by findings in the National Audit Office of Norway’s investigation of the authorities’ facilitation of the sharing and reuse of data in public administration . 19
A number of studies show that the development of AI, especially generative AI, has immense potential for value creation. Both the public sector and the business sector must become even better at leveraging the potential of enabling technologies such as AI and 5G. A 2023 investigation by the National Audit Office of Norway 20 shows that government and state-owned enterprises are exploring the opportunities offered by AI to improve services and streamline work processes. Many organisations have launched AI projects, but only a few have reached the stage where their solutions are being put into practice.
Nor have we made as much progress as we would have liked in our work on seamless, user-oriented services, even though surveys 21 indicate that increasing cross-sectoral collaboration is yielding results. For the digitalisation of the public sector to succeed, we need a high level of trust in the public sector. Both IT i praksis for 2023 22 [IT in practice for 2023] and the Norwegian Citizen Survey for 2024 23 indicate that trust in the public sector is under pressure. This trend must be reversed.
If Norway is to succeed with the digital transition, we are entirely dependent on the business sector succeeding. In Norway, more than 90 per cent of enterprises are small compared to most countries in Europe. It is therefore challenging for them to keep up with the digital transition. This may be due to a lack of skills and access to risk-mitigating financing. Effective collaboration between the public and private sectors and favourable framework conditions are needed to succeed in the digital transition of the business sector in the years ahead.
Everyone should have the opportunity to participate in the digital society. New inequalities in society may arise if parts of the population do not have access to digital services, are unable to participate digitally or are digitally vulnerable. This applies to around 850,000 people today. We must therefore combat digital exclusion.
Children and young people are growing up in a society where digital media plays a major role. Digitalisation can challenge their growth and learning environment. It is particularly important to safeguard children’s privacy and consumer protection, and the right to protection from harmful content. It is also important to prevent online abuse and be aware of the effects that the use of digital media can have on the mental health of children and young people.
Finally, both rapid technological developments and the geopolitical situation are challenging our security and emergency preparedness. The Norwegian National Security Authority’s report Nasjonalt digitalt risikobilde 2023 [National Digital Risk Situation 2023] 24 clearly describes an uncertain and unpredictable landscape, where advanced technologies introduce new threats and vulnerabilities. We shall safeguard and secure Norway amidst digital development.
OECD analyses on digitalisation in Norway
On behalf of the Ministry of Digitalisation and Public Governance, the OECD has conducted analyses of digitalisation in the public sector and in society at large, and has issued recommendations for strengthening such efforts.
Box 2.1 OECD assessment of digitalisation in the public sector25
The OECD recommends strengthening the governance and coordination of digitalisation policy, ensuring more a coherent prioritisation of investments in digitalisation initiatives, and strengthening work on digitalisation-friendly legislation. It points to the need for sustainable governance and funding models for national joint solutions and recognises the potential for greater sharing and use of public data. Furthermore, it recommends a more strategic and coordinated approach to the use of AI in the public sector. It is also important to swiftly implement the EU’s AI Act into Norwegian law. Finally, the OECD believes that we should focus even more on quality of use and user involvement in the development of public digital services.
Box 2.2 OECD assessment of digitalisation in society26
The OECD recommends that Norway improve its ability to adopt new technologies and develop digital competence to increase innovation and competitiveness. The digitalisation of small and medium-sized enterprises must be strengthened. Attention must be given to ensuring that digital competence is developed among both current and future employees. Further investment is needed in digital innovation, access to venture capital and measures to support the emergence of digital start-ups, particularly in terms of scalability. The OECD recommends a better facilitation of the sharing of data both within the business sector and between the public and private sectors. Households and enterprises should be ensured access to high-speed broadband, including in more sparsely populated areas. Targeted efforts must also be made to include groups that experience digital barriers and digital exclusion. For Norway to remain at the cutting edge, the OECD believes that digitalisation policy must be developed and implemented in a flexible and coordinated manner.
The OECD’s analyses and recommendations correspond well with the rest of the knowledge base. Studies on digitalisation conducted by, among others, Statistics Norway, the Norwegian Agency for Public and Financial Management and the Norwegian Digitalisation Agency, paint a similar picture.
Drivers and trends affecting digitalisation
Drivers in society such as technological development, climate change, migration, pandemics, geopolitical security and other factors create challenges and uncertainty. These factors impact the digitalisation of society. Identifying drivers helps us to equip ourselves for the future, even if developments take unexpected turns. The Norwegian Digitalisation Agency and the Norwegian Board of Technology have described the drivers and technological trends that may affect Norwegian society towards 2030. 27
Figure 2.1 Drivers and trends towards 2030
The drivers and trends are changing rapidly, with new developments emerging. The rapid pace of change means that we need to monitor societal developments closely. The OECD recommends that all countries work on insights regarding the future. The Government has therefore established a digitalisation forum where developments in trends and society in general are discussed annually, including with the social partners. In addition, the public administration must develop capacity and skills in order to gain insight into important developments and trends.