Only one in four Andorran SMEs uses A.I.

Only 24% of small and medium-sized enterprises (SMEs) in Andorra use artificial intelligence (AI), compared with 100% of large companies, according to a study conducted by Andorra Digital based on a sample of 678 companies and 800 citizens.

The data shows that, although the Principality is making progress in its digital transformation and performing strongly in terms of business digitalisation, the adoption of new technologies varies considerably depending on company size.

Andorra ranks third in Europe for AI integration

Overall, 25% of the companies surveyed use artificial intelligence, representing a 17% increase compared with 2022. Meanwhile, the adoption of advanced technologies stands at 38%, up 8% from four years ago.

One of the study’s most notable findings is Andorra’s position in the European ranking for artificial intelligence integration, where the country ranks third.

Andorra Digital director David Vicente highlighted the positive evolution and said the country is consolidating its digital transformation process.

"Overall, we are growing. We are consolidating this whole digitalisation process, also as a result of the action plan that has been implemented for years," Vicente said.

However, the picture changes considerably when companies are analysed according to their size.

Large companies widen their technological advantage

The difference is particularly striking when it comes to artificial intelligence. Only 24% of SMEs use AI, while the figure reaches 100% among large companies.

The gap also extends to specialised information and communication technology (ICT) talent. 100% of large companies have specialised ICT talent, compared with just 12% of SMEs.

The disparity is also reflected in investment. Large companies account for €5 million in investment in information and communication technologies, further highlighting the difference in technological capacity between large businesses and SMEs.

The figures therefore show that digital transformation is advancing in Andorra, but it is not progressing at the same pace across the entire business sector.

96% of citizens connect to the internet every day

The study also analyses the level of digitalisation among citizens and concludes that Andorra has high levels of internet access and connectivity.

96% of citizens connect to the internet every day, while 79% of respondents consider themselves to have digital skills. In addition, 70% of citizens shop online and 84% use digital banking.

"From an access perspective, we are very advanced. In fact, we are one of the leading countries in Europe in terms of access and connectivity", Vicente said.

However, the report also identifies a digital divide among different population groups.

Only 40% of people aged between 66 and 74 have basic digital skills. The figure falls to 28% among people without formal education and stands at 45% among people on low incomes, compared with 94% among those on high incomes.

"Indeed, we are concerned. Otherwise, we would not have action plans in place to try to mitigate these gaps. Some are already operational, so we are working to become more inclusive", Vicente explained, adding that the objective is to reach 100% accessibility.

The primary sector remains the least digitalised

The study also identifies the primary sector as the least digitalised in Andorra, although Andorra Digital believes the situation is gradually changing.

New technologies are allowing farmers and livestock producers, among others, to monitor livestock and keep closer track of crops, making it possible to automate processes that previously required more constant intervention.

"I think this is fortunately changing gradually," Vicente said, stressing that one of the challenges is also making professionals in the sector aware of the technological tools available to them.

In this regard, Andorra Digital plans to provide training for workers in the livestock industry with the aim of improving competitiveness and expanding opportunities to market their products.

According to Vicente, the adoption of these technologies could help producers achieve higher-quality products while also reducing costs associated with certain agricultural and livestock activities.

The study therefore paints a picture of a highly connected and increasingly digital Andorra, but also highlights a significant gap between large companies and SMEs, particularly in artificial intelligence, technological talent and investment capacity.