Andorran firms lift ICT spending as AI use rises to 24.8%

Andorran companies increased their investment in digital technology in 2024, with total ICT spending approaching €145 million and use of artificial intelligence rising sharply to 24.8% of firms, up from 8.1% in 2022.

The official 2024 survey found that 91% of businesses used information and communication technologies during the year and 90.9% had internet access. About 83% of employees made regular use of ICT. Most companies reported connection speeds between 500 Mb/s and 1 Gb/s, nearly 24% exceeded 1 Gb/s, and more than 93% judged their connection adequate for operational needs.

Cloud adoption continues to grow: roughly 39% of companies used paid cloud services in 2024. However, only about 16% of firms employed dedicated ICT specialists and roughly 10% offered specific digital-skills training; most ICT functions remain outsourced to external providers. Among companies that do not use AI, the most commonly cited obstacle was a lack of specialised knowledge.

Digital tools are increasingly embedded in management and external communications. Some 24% of companies paid for online advertising and 63.9% used digital signatures when communicating with external agents, primarily in dealings with the public administration. Approximately half of businesses maintain a website, with variation by sector: 53.7% in industry, 47.9% in services and 37.1% in construction.

E‑commerce activity remained modest but notable. Some 17.6% of companies received orders or bookings via websites or mobile apps; for those firms online sales represented an average 42.6% of turnover. The services sector led online sales, with 69.5% of its e‑sales directed to households, 27.4% to other businesses and 3.1% to public administration. Geographically, services’ e‑sales were split 38.9% within Andorra, 47.1% to the EU and 14.0% to other countries. Among firms selling to EU members, 25.2% reported problems related to high delivery or return costs.

On the purchasing side, 18.7% of companies placed orders online, which accounted for 36.5% of their total purchasing volume; of those purchases, 18.3% were made domestically, 69.2% in the EU and 12.4% with the rest of the world. Big Data use (accessing or providing large datasets) was reported by 10.3% of firms.

Billing is shifting toward digital formats: 70.4% of invoices were issued as PDFs or similar, while 17.3% remained on paper. Security practices showed widespread uptake of basic measures: 67.3% of firms use strong passwords and 62.7% keep backups in separate locations.

Teleworking was present in 32.2% of companies, with remote work accounting for an average 45.7% of working time when practised. Environmental measures linked to ICT are also becoming more common: 65% of companies take steps to reduce paper use and 63.6% recycle, reuse or resell electronic equipment at end of life.

Sectoral data highlight gaps in digital reach: agriculture lagged behind other sectors, with internet access reported by 63% of agricultural firms while other major sectors exceeded 85%. The survey also found differences in staff ICT use — around 86% in agriculture and services, versus roughly 63% in industry and construction — reflecting uneven digital adoption across the economy.