The rapid advance of digital technologies and their increasingly cross-cutting applications have driven global transformations that are affecting the entire economy and all of society. The coronavirus disease (COVID-19) pandemic marked a turning point in terms of how widely digital solutions are used, as they became vital tools for maintaining social and productive activities under the restrictions on face-to-face activities and movement put in place during the health emergency. This more widespread adoption of digital technologies —especially of the most advanced ones linked to intensive use of data and smart solutions— is disrupting consumption, business and production models, enabling new forms of value creation with potential impacts on well-being, economic competitiveness and care for the environment. Today, digitalization is seen as a key instrument for the transition to a new, more inclusive and sustainable development model. However, the countries of Latin America and the Caribbean still face a series of structural challenges that prevent effective adoption of digital technologies. Progress towards an inclusive and sustainable digital transformation requires a number of measures and actions, which are addressed in this document.