• 24-May-2024


    Artificial intelligence, data and competition

    This paper discusses recent developments in Artificial Intelligence (AI), particularly generative AI, which could positively impact many markets. While it is important that markets remain competitive to ensure their benefits are widely felt, the lifecycle for generative AI is still developing. This paper focuses on three stages: training foundation models, fine-tuning and deployment. It is too early to say how competition will develop in generative AI, but there appear to be some risks to competition that warrant attention, such as linkages across the generative AI value chain, including from existing markets, and potential barriers to accessing key inputs such as quality data and computing power. Several competition authorities and policy makers are taking actions to monitor market developments and may need to use the various advocacy and enforcement tools at their disposal. Furthermore, co-operation could play an important role in allowing authorities to efficiently maintain their knowledge and expertise.
  • 22-May-2024


    Enhancing Resilience by Boosting Digital Business Transformation in Ukraine

    Digital technologies not only offer a vast potential to enhance firm productivity, they can also help enhance resilience and support economic recovery in times of war. The government has made significant strides in accelerating the digital transformation and has reinforced support for digitalisation since the onset of Russia’s full-scale invasion in February 2022. While digital technologies have brought significant benefits to the country, Ukraine’s SMEs are yet to fully tap into the potential of digitalisation. Beyond war-related challenges, lack of awareness, digital skills shortages, sectoral specificities, and financial constraints complicate their digital development. The government aims to further promote SME digitalisation and is currently preparing its SME Strategy 2024-27. Throughout 2023, the OECD provided guidance to Ukraine on how to help SMEs leverage digitalisation for productivity, resilience, and recovery. This report presents an overview of the findings, looking at i) ways to strengthen the national and subnational institutional and policy framework for SME digitalisation; ii) avenues for targeted digitalisation support services for SMEs, building on the OECD’s blueprint; and iii) specific ways digitalisation can help SMEs weather war-related challenges.
  • 14-May-2024


    OECD Artificial Intelligence Review of Egypt

    The 2019 Egyptian National Artificial Intelligence (AI) Strategy is a key catalyst for digital transformation in Egypt and supports the country’s sustainable development agenda. As North Africa’s biggest economy, Egypt faces a challenging economic and demographic context, including high inflation and a high youth unemployment rate. As the first Arab and African country to adhere to the OECD Recommendation on Artificial Intelligence in 2021, Egypt has made progress in implementing the OECD AI Principles. This country review explores the state of implementation of the OECD AI Principles in Egypt by providing a mapping of Egypt’s AI governance and policy implementation through gap analysis, comparative analysis, and benchmarking. It highlights key findings and recommendations to strengthen Egypt’s AI ecosystem and facilitate the development of inclusive, responsible, and human-centric AI policies and practices that support Egypt’s development agenda and stand the test of time.
  • 14-May-2024


    Nowcasting the growth rate of the ICT sector

    This paper details the methodology used to nowcast the growth rate of the information and communication technology (ICT) sector in the 'The growth outlook of the ICT sector' chapter of the OECD Digital Economy Outlook 2024, Volume 1. In an era of rapid digital transformation, innovative data sources for economic measurement are crucial. Internet search data have gained prominence for tracking real-time economic activity. This paper details a nowcasting model that leverages Google Trends data to provide policymakers with timely, up-to-date and comparable data on the economic growth of the ICT sector. Having timely data on ICT sector performance is essential to evaluating the effectiveness of sector-related policies. By addressing data challenges and employing a data-driven approach, this paper advances economic measurement of the digitalisation of the economy and provides insights into ICT sector growth dynamics.
  • 14-May-2024


    OECD Digital Economy Outlook 2024 (Volume 1) - Embracing the Technology Frontier

    The OECD Digital Economy Outlook 2024, Volume 1: Embracing the Technology Frontier provides new insights on key technologies that underpin the digital technology ecosystem and their impacts. Using big data and machine-learning techniques, Volume 1 provides new estimates of the growth rate of the ecosystem’s core – the information and communications technology (ICT) sector. It then looks toward the technology frontier with perspectives on the future of artificial intelligence (AI) and how it can be shaped into a positive force. Volume 1 also analyses how people, firms and governments are adopting digital technologies, offering insights into the scale and scope of digital divides and how to boost equal opportunity and inclusion. To that end, it looks at the critical need for next generation wireless networks to provide unlimited connectivity everywhere. Moving beyond the hype of immersive technologies, Volume 1 examines the proven ability of virtual reality (VR) to scale, while identifying its opportunities and risks. Finally, it shines a spotlight on mental health in digital environments, including those most at risk.
  • 6-May-2024


    Defining AI incidents and related terms

    As AI use grows, so do its benefits and risks. These risks can lead to actual harms ('AI incidents') or potential dangers ('AI hazards'). Clear definitions are essential for managing and preventing these risks. This report proposes definitions for AI incidents and related terms. These definitions aim to foster international interoperability while providing flexibility for jurisdictions to determine the scope of AI incidents and hazards they wish to address.
  • 24-April-2024


    Digital adoption during COVID-19 - Cross-country evidence from microdata

    The COVID-19 pandemic caused an unprecedented global economic downturn, affecting productivity, business dynamics, and digital technology adoption. Using a comprehensive commercial database from Spiceworks Ziff Davis, this study analyses the firm-level drivers of digitalisation during the pandemic across 20 European countries. The findings show that a considerable share of firms introduced new digital technologies during the COVID-19 crisis. Notably, firms that were larger, more digitalised, and more productive before the pandemic were more likely to introduce new digital technologies in 2020 and 2021. Additionally, firms with pre-existing complementary technologies had a higher likelihood of adopting digital applications that gained momentum during the pandemic (such as digital commerce, collaborative software, cloud, and analytics). These patterns may increase polarisation among the best-performing firms and the rest of the business population. Public policy can play a key role in fostering an inclusive digital transformation in the post-pandemic era.
  • 16-April-2024


    The impact of Artificial Intelligence on productivity, distribution and growth - Key mechanisms, initial evidence and policy challenges

    This paper explores the economics of Artificial Intelligence (AI), focusing on its potential as a new General-Purpose Technology that can significantly influence economic productivity and societal wellbeing. It examines AI's unique capacity for autonomy and self-improvement, which could accelerate innovation and potentially revive sluggish productivity growth across various industries, while also acknowledging the uncertainties surrounding AI's long-term productivity impacts. The paper discusses the concentration of AI development in big tech firms, uneven adoption rates, and broader societal challenges such as inequality, discrimination, and security risks. It calls for a comprehensive policy approach to ensure AI's beneficial development and diffusion, including measures to promote competition, enhance accessibility, and address job displacement and inequality.
  • 12-March-2024


    OECD broadband statistics update

    Fibre and Fixed Wireless Access (FWA) have seen the strongest growth in fixed broadband technologies in three years. Fibre subscriptions have increased by 56% between June 2020 to June 2023, and FWA subscriptions have increased by 64%.

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  • 5-March-2024


    Explanatory memorandum on the updated OECD definition of an AI system

    In November 2023, OECD member countries approved a revised version of the Organisation’s definition of an AI system. This document contains proposed clarifications to the definition of an AI system contained in the 2019 OECD Recommendation on AI (the 'AI Principles') to support their continued relevance and technical soundness. The goal of the definition of an AI system in the OECD Recommendation is to articulate what is considered to be an AI system, for purposes of the recommendation.
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