Iceland AI Regulation

Overview

Iceland is preparing for the incorporation of the EU AI Act into national law through the EEA Agreement, though no legislative proposal has yet been introduced. As an EEA EFTA state, Iceland participates as an observer in EU AI Board meetings but is not directly bound by the AI Act until it is formally incorporated — a process that requires an EEA Joint Committee decision and may involve national parliamentary steps.

Key Sources

Council of Europe Framework Convention on AI (CETS 225)View ↗

Iceland AI Action Plan 2024–2026View ↗

Iceland AI Policy (2021)View ↗

Global Legal Post — AI Law Guide: IcelandView ↗

This content is for informational and educational purposes only and does not constitute legal advice.

Where we are now

The Ministry of Culture, Innovation and Higher Education published Iceland's AI Action Plan 2024–2026 in final form on 2 July 2025, following public consultation. The plan sets out 25 targeted measures across five pillars: AI for society, competitiveness, education, public administration, and healthcare. It estimates AI could add between 0.8% and 6% to GDP annually by 2029.

Iceland has no AI-specific legislation. Governance relies on the national AI Policy (2021), GDPR implementation through Act No. 90/2018, and sector-specific rules. The government is actively deploying AI in public services — the Island.is platform is integrating AI for case triage and citizen enquiries across 50+ government agencies.

Iceland signed the Council of Europe Framework Convention on AI (CETS 225) at the opening ceremony in Vilnius on 5 September 2024.