Public Sector Digitalisation in Norway: Current Trends and Challenges in the Legal Framework

Abstract

This chapter explores Norway's public digitalization efforts, assessing the effectiveness of legislative and policy measures in advancing the public sector's digitalization and examining the adequacy of safeguards for fundamental rights. Norway stands out for its highly digitalized public sector, a result of strategic legislative and policy initiatives promoting a digital-friendly environment. We pinpoint three key areas of focus in these endeavors.

First, there have been numerous legislative initiatives enabling profiling and automated decision making in public agencies. While driven by efficiency objectives, these initiatives tend to be seen as tools to promote equal treatment. Second, changes have been made to counter challenges in data reuse hindering digital transformation and Artificial Intelligence (AI) implementation. Third, the advocacy for regulatory sandboxes emerges as a powerful force for experimentation and learning, with platforms like the Sandbox for Responsible AI setting examples.

Despite the progress, challenges persist. Firstly, most initiatives focus on enabling decisions via hard-coded software, often neglecting advanced AI systems designed for decision support. Secondly, discretionary criteria in public administration law and semantic discrepancies across sector-specific regulations continue to be a stumbling block for automation and streamlined service delivery. Importantly, few laws directly tackle the challenges digitalization presents to fundamental democratic values and rights, due to a fragmented, sector-focused approach.

Furthermore, we assess the AI Act's potential to facilitate AI implementation while redressing national law gaps concerning human rights and boosting AI use in public agencies. The Act places public administration under sharp scrutiny, as the bulk of the prohibitions and high-risk AI applications target the public sector’s use of AI. This focus promises to enhance the protection of individuals in this domain, especially concerning transparency, privacy, data protection, and anti-discrimination. Yet, we identify a potential conflict between the AI Act and a tendency in the Norwegian legal framework to restrict the use of AI for certain purposes.

Finally, we put forth recommendations to boost digitalization while safeguarding human rights. Legislative actions should pave the way for the integration of advanced AI systems intended for decision support. There is a need for coordination of sector-specific initiatives and assessment of their impact on fundamental rights. To amplify these national endeavors, we point out areas where cross-border collaborations in the Nordic-Baltic regions could be vital, emphasizing data sharing, and learning from successful projects. Regulatory sandboxes offer another promising avenue for collaboration. With its considerable experience in sandboxes tailored for responsible AI, Norway stands as a beacon for other nations in the Nordic and Baltic regions.