The OECD Digital Economy Outlook (DEO) is a flagship publication that analyses trends in technology development, digital policies and digital performance in OECD countries and partner economies. The 2024 edition draws on indicators from the OECD Going Digital Toolkit, the OECD ICT Access and Usage databases and the OECD AI Policy Observatory, among other data. It also benefits from responses to the DEO Questionnaire, which provides insights into digital priorities and policies in OECD countries and partner economies.

An ecosystem of interdependent digital technologies is advancing fast, driving major economic and societal changes. Data feed this ecosystem, creating immense value but also risks for privacy and safety on line. Some of these technologies are already an integral part of daily life, while others remain on the horizon. The OECD Digital Economy Outlook 2024 (Volume 1) provides new insights on key technologies that underpin digital transformation and their impacts.

As digital technologies spread and their societal and economic impact deepen, the need for evidence-based policies increases. However, there is a lack of timely and cross-country comparable data on the growth of digital components of the economy. While the “digital economy” is no longer strictly confined to the information and communication technology (ICT) sector, the latter remains at its core and it is essential to supporting further digital innovation. This chapter presents the results of a nowcasting model that leverages online search data and machine-learning techniques to provide policy makers with up-to-date and comparable data on the economic growth of the ICT sector. These estimates can help shed light on how this sector is performing today, which will help inform policy decisions that impact this vital sector of the economy in the future.

The artificial intelligence (AI) landscape has evolved significantly since 1950 when Alan Turing first posed the question of whether machines can think. Today, AI is transforming societies and economies. It promises to generate productivity gains, improve well-being and help address global challenges, such as climate change, resource scarcity and health crises. Yet, the global adoption of AI raises questions related to trust, fairness, privacy, safety and accountability, among others. Advanced AI is prompting reflection on the future of work, leisure and society. This chapter examines current and expected AI technological developments, reflects on the opportunities and risks foresight experts anticipate, and provides a snapshot of how countries are implementing the OECD AI Principles. In so doing, it helps build a shared understanding of key opportunities and risks to ensure AI is trustworthy and used to benefit humanity and the planet.

This Spotlight examines emerging trends in next generation wireless networks that are shaping the connectivity ecosystem. These trends raise questions about how to make the next generation of wireless technologies a commercial and ubiquitous reality. The Spotlight dives into research initiatives, market trends and developments towards integration of terrestrial wireless connectivity solutions like 5G and 6G with non-terrestrial technologies, such as satellites and other aerial platforms. In so doing, it identifies challenges for spectrum policy, regulatory collaboration, interoperability, environmental sustainability, safety and digital security, and digital divides. These issues, both technical and regulatory, must be addressed to realise future visions.

Digital technologies and data have dramatically changed the way people live and work, how and in which markets firms operate, and the ways in which governments interact with citizens. This brings many opportunities, as well as new challenges. As governments and the private sector increasingly shift from offline to online service provision, access and effective use of digital technologies become critical for equal opportunity and inclusion. Technologies such as cloud computing and Internet of Things (IoT) have diffused rapidly in recent years. However, productivity growth remains slow, including in digital-intensive sectors. Adoption of data-dependent technologies also remains low. This chapter considers both issues in turn before highlighting policy actions to make digital technologies and data more inclusive and productive.

The rise of three-dimensional (3D) technologies is raising questions about the opportunities, risks and impacts of immersive environments on firms, governments, people and society. This chapter disentangles immersive digital environments and focuses on the importance of one immersive medium – virtual reality (VR) – because of its proven ability to scale. It explains the technologies and features of VR, highlighting its benefits and opportunities, as well as its downsides and risks. Concrete use cases help move beyond the buzzwords and hype of VR to a real understanding of when it is exceptionally useful (and when it is not). The chapter also explores the DICE framework, which involves using VR for things that are otherwise dangerous, impossible, counterproductive or expensive, as a useful guide. Key policy issues for VR and immersive technologies include privacy challenges, in particular those associated with tracking data, and safety, especially for children and in moving vehicles.

Digital technologies have dramatically changed how people live and communicate, bringing benefits and opportunities, as well as new risks, including for mental health. This Spotlight discusses features of digital environments that help explain why people communicate and interact differently on line, including anonymity, disembodiment and disinhibition. It reviews negative behaviours associated with mental health problems, focusing on cyberbullying, excessive or problematic Internet use (PIU), and problematic social media use (PSMU), and how immersive technologies may magnify their effects. It shows that negative behaviours in digital environments are on the rise and they disproportionally affect girls. The Spotlight concludes with an emerging policy agenda to harness the opportunities and minimise the risks of digital and immersive environments for mental health.