Andorran Firms Boost ICT Spending to €145M, AI Adoption Surges to 25% in 2024

Andorran companies increased ICT spending to nearly €145 million in 2024, with artificial intelligence adoption rising sharply to 24.8% from 8.1% in 2022, the official survey on digital equipment and e-commerce reveals.

The survey indicates 91% of firms used information and communication technologies that year, 90.9% had internet access, and 83% of employees used them regularly. Most businesses enjoyed connection speeds between 500 Mb/s and 1 Gb/s, with nearly 24% exceeding 1 Gb/s; over 93% rated their links adequate for needs. Cloud services saw uptake by roughly 39% on a paid basis—around 40% in most sectors, except agriculture at 18.2%.

Few companies built internal capacity: 16% employed dedicated ICT specialists, and about 10% offered digital training, leaving most functions to external providers. Non-AI adopters most often cited a lack of specialised skills. Digital tools advanced operations, including 24% investing in online advertising and 63.9% using digital signatures, primarily for public administration. Half of firms maintained websites, with industry at 53.7%, services at 47.9%, and construction at 37.1%.

E-commerce remained modest but expanded in services, where 17.6% of all companies accepted online orders or bookings—accounting for 42.6% of their turnover. Services firms allocated 69.5% of online sales to households, 27.4% to other businesses, and 3.1% to public administration; by destination, 38.9% stayed domestic, 47.1% targeted the EU, and 14% went elsewhere. A quarter of EU sellers (25.2%) faced challenges, mainly high delivery or return costs. For purchases, 18.7% bought online, representing 36.5% of volume: 18.3% local, 69.2% EU, and 12.4% rest of world. Big Data use stood at 10.3%.

Invoicing shifted digital, with 70.4% in PDF or similar formats against 17.3% on paper—a steep decline since 2018. Security measures were common: 67.3% applied strong passwords, and 62.7% backed up data offsite. Teleworking occurred in 32.2% of firms, averaging 45.7% of hours. Sustainability efforts grew, as 65% reduced paper use and 63.6% recycled or reused electronics.

Sector disparities endured: agriculture showed 63% internet access and 86% staff ICT use, services exceeded 85% access with similar staff rates, while industry and construction trailed at 63% staff use.

Andorra Telecom has bolstered this progress through infrastructure. Director general Jordi Nadal detailed a €4 million fibre optic overhaul enabling up to 10 Gbps nationwide—businesses now receive 2.5 Gbps symmetric, households at least 500 Mbps from prior 300 Mbps, without tariff increases. High-speed 5G coverage will soon reach 91% of the population in populated areas, with downloads up to 2.5 Gbps. The company deploys AI for internal automation, handling over 1,000 overnight calls to the 111 hotline, and data analysis by nearly 100 staff using licensed tools like OpenAI. Its subsidiary Diquital leads cybersecurity for Andorra Telecom and local firms. Sustainability includes 100% green energy from FEDA, electric vehicle expansion, teleworking promotion, and child-safe SIMs with content filtering.