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AI regulation in Iceland: laws & policy (2026)

AI in Iceland: guidelines only.

Iceland has no standalone AI law. Its primary AI governance instrument is the government's AI Action Plan 2025-2027, a non-binding strategic document with 20 funded actions across five pillars. As an EEA EFTA state, Iceland is tracking the EU AI Act, which has not yet been formally incorporated into the EEA Agreement via Joint Committee decision, leaving Persónuvernd and existing GDPR-based rules as the operative regulatory framework for AI systems.

Last verified Official sources first · MethodologyCompare Iceland with other countries

Legal framework

AI Action Plan 2025-2027 (Ministry of Culture, Innovation and Higher Education); Persónuvernd (DPA) oversight under Act No. 90/2018 (GDPR implementation); EU AI Act pending EEA incorporation

Key points: artificial intelligence in Iceland

  1. AI Action Plan 2025-2027

    The Icelandic government published an AI Action Plan covering 2025-2027 with 20 funded measures spanning society, competitiveness, education, public administration, and healthcare. It is a policy strategy, not binding legislation, and is subject to six-monthly reviews.

    stjornarradid.is icelandreview.com

  2. No standalone AI law

    Iceland has not enacted dedicated AI legislation. Regulation of AI systems is addressed through existing horizontal laws, principally data protection law (Act No. 90/2018, implementing the GDPR) and sector-specific rules, rather than a bespoke AI statute.

    globallegalpost.com oecd.ai

  3. EU AI Act: pending EEA incorporation

    The EU AI Act (Regulation 2024/1689, in force 1 August 2024) is listed in the EFTA EEA-Lex tracker but has not been formally incorporated into the EEA Agreement by Joint Committee decision as of May 2026. Iceland participates as an observer in EU AI Board meetings. Full application requires an EEA Joint Committee decision, which may also entail Icelandic parliamentary steps.

    efta.int efta.int artificialintelligenceact.eu

  4. Persónuvernd as de facto AI overseer

    Iceland's Data Protection Authority (Persónuvernd) is the principal enforcement body touching AI, supervising compliance with Act No. 90/2018 / GDPR on automated decision-making, data minimisation, and transparency. Its 2025 annual priorities included an explicit focus on AI governance and cybersecurity.

    island.is grip.globalrelay.com

  5. Government IT and digital policy framework

    The Government of Iceland's broader information technology and digital policy portfolio, managed by the Ministry of Culture, Innovation and Higher Education, provides the umbrella under which the AI Action Plan sits alongside other digital-transformation and data strategies.

    government.is

  6. OECD AI Principles alignment

    Iceland has aligned its AI strategy with the OECD AI Principles, emphasising trustworthy, human-centric AI. Iceland's initiatives are catalogued on the OECD.AI national dashboards, reflecting its commitment to international voluntary norms absent domestic binding rules.

    oecd.ai

Sources

  1. stjornarradid.is/library/04-Raduneytin/Menningar---nyskopunar--og-haskolaraduneytid/Ic
  2. government.is/topics/information-technology/policies/
  3. efta.int/eea-lex/32024r1689
  4. efta.int/eea-relations-eu/eea-institutions-two-pillar-structure/eea-joint-comm
  5. island.is/en/o/the-data-protection-authority
  6. oecd.ai/en/dashboards/national/iceland
  7. artificialintelligenceact.eu/national-implementation-plans/
  8. globallegalpost.com/lawoverborders/artificial-intelligence-law-guide-1549732605/iceland-1
  9. grip.globalrelay.com/icelands-dpa-signals-continued-focus-on-cybersecurity-health-data-and
  10. icelandreview.com/news/english-version-of-icelands-artificial-intelligence-action-plan-

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Orientation, not legal advice: verify against the primary sources linked above. Last verified 24 May 2026. Methodology & how to cite · State of Technology Regulation 2026