Australia’s digital outlook is bright: OECD recognises our technical maturity

The Organisation for Economic Co-operation and Development (OECD) has released their first Digital Government Outlook 2026: From foundations to transformation impact (DGO).

Drawing on insights from the Digital Government Index (DGI) and Open, Useful and Re-usable Data Index (OURdata), the outlook shows how 36 OECD countries and 8 accession countries are advancing more human-centred digital transformation. Across the cohort, Australia was highlighted as a leader coming in 2nd in the world. 

As part of the DGO’s launch, the DTA were invited to join a discussion on best practices for digital government implementation.

The outlook presented 5 key insights.

Adopting artificial intelligence

Artificial intelligence (AI) use is growing, mainly in internal processes and services. Enablers like data governance, transparency, infrastructure, and skills are developing unevenly.

Only six countries maintain open algorithm registers for government AI, with the wider global trend indicating AI projects often remain small pilots, rarely scaling or measuring benefits.

Australia remains a stand-out in its monitoring, adoption, and scaling of government led AI initiatives. Since the launch of the Policy for the responsible use of AI in government in 2024, the Australian government has continued to reinforce accountability, transparency, and safety expectations of how AI tools and services are implemented and scaled.

The government released the AI Plan for the Australian Public Service. The plan set out how the public service will harness AI to enhance service delivery, strengthen public trust, and ensure responsible use of emerging technologies. We are keeping pace with AI’s rapid advance through clear guidance, strong governance settings, and providing the capabilities needed to support the accountable use of AI across agencies.

Recent work delivered in support of the plan includes:

• The release of an AI impact assessment tool
• Specific Guidance on procurement in government
• Updates to the Technical standard for government’s use of artificial intelligence with a recent addition for considering the implementation of agentic AI services
• Guidance for AI proof of concept to scale offering a flexible approach that agencies can adapt to their operational contexts for effective integration of AI across diverse environments

A turning point

With the rising expectation that governments respond rapidly to citizen needs, the focus is beginning to shift from building the foundations to ensure digital is effectively implemented across service delivery.

Australia's governance framework helps create those conditions that enable effective implementation. The Data and Digital Government Strategy provides a whole-of-government vision for delivering simple, secure and connected services by 2030. 

Through annual implementation plans, it aligns action across government and drives progress in priority areas including artificial intelligence, data, connected service delivery, and cyber security, trust and resilience.

Investments to deliver scale

The OECD’s outlook stresses the importance of strong central governance paired with empowered delivery teams. Many governments have strengthened central digital leadership and oversight, but coordination across agencies remains uneven.

Effective governance therefore requires not just setting rules, but actively enabling collaboration and system-wide coherence in how digital services are designed and delivered.

There was also a call to reduce government’s over-reliance on external vendors. By focusing on bringing skills in-house, capability gaps are removed and governments can better maintain technical solutions autonomously.

Australia has continued to invest in our in-house technical capabilities through the APS Data, Digital and Cyber Workforce Plan and the Digital Profession.

The Workforce Plan provides a coordinated approach to strengthening capability across the APS and addressing workforce challenges in critical digital disciplines.

With almost 20,000 members, the Digital Profession supports career development, workforce mobility and capability uplift across government. Through communities of practice, professional development opportunities and common career pathways, it helps agencies build and retain digital expertise.

Human centred design

As user expectations continue to evolve, governments are increasingly focused on creating services that are accessible, inclusive and easy to use.

A central theme from the OECD’s outlook is the need to treat service delivery as a system, not a collection of separate interactions. Achieving this requires strong foundations such as interoperable systems, shared digital infrastructure, and effective data-sharing arrangements.

When these elements are in place and actively used, governments can enable “once-only” interactions.

The Digital Experience Policy establishes common expectations for how government services should be designed, delivered and improved. Supported by the Digital Service Standard, Digital Inclusion Standard and Digital Access Standard, it helps agencies create services that are more consistent, accessible and responsive to community needs.

Ongoing enhancements to myGov are also helping create more connected experiences by making it easier for people and businesses to access government services.

Public infrastructure and governance

A major theme of the Digital Government Outlook was how effectively nations leveraged shared, reusable systems across their agencies to deliver services and exchange data.

Establishing this backbone allows government to operate as a single, joined-up system rather than isolated agencies. Effective public infrastructure and data sharing reduces duplication, lowers costs, and allows information to flow across organisations.

The Australian Government Architecture helps agencies identify opportunities to reuse existing capabilities, improve interoperability, and make more consistent technology decisions across government.

Initiatives such as the Australian Government Data Governance Framework and the Data Maturity Assessment Tool are helping agencies strengthen governance, improve capability and make greater use of data to inform policy and service delivery.

Where to from here

The overarching theme for the Digital Government Outlook 2026 was the transition from strategy to execution and into the refinement of system-level performance.

Governments already have most of the components in place; the challenge now is to connect them, use them consistently, and deliver measurable outcomes for people and businesses.

Read the full Digital Government Outlook 2026 at www.oecd.org.