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This report focuses on the impacts of digital transformation on jobs and productivity and is intended as an input to discussion in the G7 Innovation Ministers track of the 2018 G7 Innovation and Employment Ministerial ‘Preparing for Jobs of the Future’. The G7 or Group of Seven is a group consisting of Canada, France, Germany, Italy, Japan, the UK and the US. The report concludes that the G7 has an important role to play in raising awareness of the transformation underway and can share experiences on how best to exploit the opportunities while effectively addressing the challenges. Such an exchange could focus on the design, implementation and evaluation of policies. The OECD can assist in this exchange and act as a clearing house in the dissemination of evidence and best practices. Beyond information sharing, the G7 can work on shared challenges that are international in nature. Four have risen up on the policy agenda: (i) ensuring the strongest possible benefits of transformative technologies on economies and societies, including the growing importance of data; (ii) developing a common approach to artificial intelligence (AI); (iii) fostering inclusive innovation; and (iv) preparing for the jobs of the future. There is also an overarching need to enhance measurement of the digital transformation so that an evidence base is established for effective policy making across these four policy challenges., The report outlines its key messages under the following areas: (1) the impact of transformative technologies on economies and societies; (2) artificial intelligence; (3) inclusive innovation; (4) preparing for jobs for the future; and (5) improving measurement of the digital transformation.